Health insurer Cigna Group, based in Bloomfield, has abandoned an effort to acquire rival Humana, after the two companies failed to agree on the price and other terms, the Wall Street Journal reported Sunday, citing sources familiar with the situation.
The deal would have created a massive company with a combined market value worth more than $140 billion.
WSJ reported in late November that Cigna and Humana, based in Louisville, Kentucky, were discussing a stock-and-cash deal that could be finalized by the end of the year.
On Sunday, Cigna announced plans to buy back $10 billion worth of shares, precluding the acquisition.
“As we look at the broader landscape and the strategic opportunities before us, we will remain financially disciplined with a clear focus on executing against our strategy, delivering value for our shareholders, and investing in our future,” said David M. Cordani, chairman and CEO of Cigna. “In light of the current environment, we will consider bolt-on acquisitions aligned with our strategy, as well as value-enhancing divestitures.”
Cordani said the company’s consistent return of 13% earnings per share on an annualized basis reflects its ongoing growth and strength.
“We are confident in the ongoing growth and strength of Cigna’s businesses and expect to carry significant momentum forward into 2024,” Cordani said. “This conviction reinforces the confidence we have in achieving our long-term annual adjusted EPS growth target of 10% to 13% while maintaining an attractive dividend.”
