A federal judge ruled against U.S. health insurer Anthem's proposed $54 billion merger with smaller rival Cigna. Fred Katayama reports.
A federal judge blocked a $54 billion merger between two health insurers, Anthem and Cigna, saying it would lead to less competition and higher prices for Americans. The merger would have created the largest U.S. health insurer by membership, Carl O'Donnell covers the story for Reuters: (SOUNDBITE) CARL O'DONNELL, M&A REPORTER, REUTERS, (ENGLISH) SAYING: "These two really didn't get along very well during the merger process. So, as early as mid-2016, reports started coming out that Cigna and Anthem CEOs were not getting along, they ran into a lot of disagreements as discussed their plans to integrate the two companies, and, in fact, their efforts to find a way to turn these companies into one after the merger really fell apart before the trial with antitrust regulators even started. So, not only was that a factor in why the court ultimately decided to shut this down. They felt like these two companies weren't going to work together well at all." Cigna said it's reviewing its options. Anthem said it was "significantly disappointed" and will appeal the decision. Last month, a different U.S. judge ruled against a $33 billion merger of two other insurers - Aetna and Humana.