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Aetna Inc (AET), Humana Inc (HUM) Call Off $34 Billion Mega Merger

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Aetna Inc (NYSE: AET ) and Humana Inc (NYSE: HUM ) are calling off their merger deal.

Aetna Inc and and Humana Inc have mutually agreed to call off the merger deal, which was valued at $34 billion. The two healthcare companies said that the decision comes after 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.

Aetna Inc says that it will be paying the $1 billion termination fee, $630 million after tax, to Humana Inc for the merger fail. It will also be canceling its deal to sell some of its Medicare Advantage assets to Molina Healthcare, Inc. (NYSE: MOH ). The comapny will also pay the fees for terminating this deal.

Humana Inc says that it will be releasing a press release to investors later today. That release will come out at 4:15 p.m. Eastern Time. The release will include the company's 2017 financial guidance. It will also contain an update on its strategic plan.

"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," Mark Bertolini, Chairman and CEO of Aetna Inc, said in a statement "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."

AET stock was up 1% and HUM stock was down slightly as of noon Tuesday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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