US health insurer Cigna (NYSE:CI) has abandoned plans to merge with Humana (NYSE:HUM), a transaction that would have created a $140 billion insurance giant, according to reports.
The Financial Times said disagreement over financial arrangements, regulatory fears and falling share prices following reports of the potential tie-up drove Cigna (NYSE:CI)’s decision to halt plans, citing people with knowledge of the deal.
Shareholders generally wanted their CEOs to carry out transformative deals but not in this environment, according to one person familiar with the matter, while the risk of a deal getting blocked or just left in limbo for years was too high and disruptive.
The end of merger talks comes as Cigna prioritizes stock buybacks.
The insurer announced plans on Sunday to increase stock repurchases by $10 billion.
The Wall Street Journal first reported that Cigna’s plans to merge with Humana (NYSE:HUM) had ended.
Shares in Cigna soared 17% on the news of the buyback, and talks breakdown, while Humana edged 1.1% lower.