Reports indicate that Cigna and Humana have abandoned their proposed merger. Initially reported by the Wall Street Journal, sources now indicate that the deal fell through due to the companies disagreeing on a merger price, but this does not exclude the possibility of future tie-ups between the companies.

Cigna also announced plans to carry out an additional USD 10 billion in share repurchases, bringing the total repurchases to USD 11.3 billion. The company noted that this repurchase would align with its “financially disciplined” strategy and serve as a “value-enhancing deployment of capital.” Before reports of the deal falling through, Cigna shares had risen 12.1% to USD 290.07 per share in pre-market trading values but had fallen 22% during 2023. 

Analyst QuickTake: Previously, the proposed deal would have created an insurance giant valued at USD 140 billion based on Cigna’s value of USD 77 billion and Humana Health’s value of USD 59 billion. While the proposed merger might have fallen through, Cigna is reportedly exploring opportunities to sell its Medicare Advantage operations. Had the deal gone through, acquiring Humana would have made Cigna the second-largest provider in the Medicare Advantage market after UnitedHealthcare.