Aetna, Humana Mutually Terminate Merger Deal - Quick Facts

(RTTNews) - Health insurers Aetna Inc. (AET) and Humana Inc. (HUM) said they have mutually ended their merger agreement following a ruling from the United States District Court for the District of Columbia granting a United States Department of Justice request to enjoin the merger.

"While we continue to believe that a combined company would create greater value for health care consumers through improved affordability and quality, the current environment makes it too challenging to continue pursuing the transaction. We are disappointed to take this course of action after 19 months of planning, but both companies need to move forward with their respective strategies in order to continue to meet member expectations," Aetna Chairman and CEO Mark Bertolini said.

Aetna also said it will pay Humana $1 billion as a result of the termination of the merger agreement. Humana said it is entitled to a breakup fee of $1 billion, or about $630 million, net of tax.

It was in July 2015 that Aetna agreed to acquire Humana in $37 billion cash and stock deal.

Additionally, Aetna said it has terminated its previously announced agreement to sell certain Medicare Advantage assets to Molina Healthcare, Inc. (MOH) and will pay the applicable fees associated with that termination.

Humana said in a separate statement that it will issue a press release later in the evening today to provide its 2017 financial guidance and provide an update on its strategic plan.