Merger was blocked last month
LOUISVILLE, Ky. (Feb. 14, 2017) — Louisville-based Humana Inc. today announced the mutual termination of its merger agreement with Aetna Inc., following a ruling from the U.S. District Court for the District of Columbia granting a U.S. Department of Justice request to enjoin the merger.
Under the terms of the merger agreement, Humana is entitled to a breakup fee of $1 billion, or approximately $630 million, net of tax.
Last month a federal judge today blocked the proposed merger of Human and Aetna, saying the $37 billion deal would hurt competition and raise prices for consumers.
“It’s good to have a resolution to the Humana-Aetna proposed merger after 19 months,” Louisville Mayor Greg Fischer said via a written statement released by his office. “The work of the Humana associates during this period has been extremely impressive. Humana has been a world-class company throughout its 56-year-history, and I am extremely confident and enthusiastic about its future as an independent company. This announcement provides clarity and signals a tremendous future for Humana and its legacy of civic participation and leadership in Louisville.”
U.S. District Judge John D. Bates wrote in his decision: “The Court concludes that the proposed merger is likely to substantially lessen competition in Medicare Advantage in all 364 complaint counties and in the public exchanges in the three complaint counties in Florida.”