Antitrust Regulators Not Optimistic Over Anthem-Cigna Deal


U.S. antitrust regulators have privately expressed concerns about Anthem Inc.’s $48 billion proposed acquisition of Cigna Corp., and are skeptical that the health insurers can offer concessions that would fully preserve competition in the industry, according to people familiar with the matter. (The Wall Street Journal)

Company representatives met June 10 in Washington with Justice Department staffers and representatives of more than a dozen state attorneys general, the people said. At the meeting, government officials outlined their worries about combining two of the nation’s top health insurers, the people said. (MarketWatch)

In addition, California’s insurance commissioner last week in a letter to the Justice Department expressed doubts about the merger, Bloomberg reported, saying it would seriously hurt competition in the nation’s most populous state. (Investor’s Business Daily)

Wall Street does not seem convinced the deal will go through, as evidenced in the wide spread between Anthem’s offer and Cigna’s share price. As of the market close on Friday, Cigna shares traded at a 32.5% discount to the offer, which has an equity value of about $44 billion. (Fortune)

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California Regulator Opposes Anthem-Cigna Merger

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