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July 4, 2015

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Aetna to buy Humana

US health insurance giant Aetna will buy rival Humana for US$37 billion, a joint statement said yesterday, creating a group with estimated annual sales of US$115 billion.

Aetna, the second-largest US health insurance player by market capitalization, said it will pay US$230 per Humana share in a cash and stock deal to create a new entity with around 33 million customers.

Under agreements approved by both boards, the transaction will leave Aetna shareholders owning around 74 percent of the new group, and investors with Humana stock holding 26 percent.

The move followed frenzied activity in the US health insurance market toward consolidation under changes made by President Barack Obama’s landmark Affordable Care Act.




 

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