US health insurer Cigna Group (NYSE:CI) has made the appropriate decision to ditch plans to merge with rival Humana (NYSE:HUM), if today’s market reaction is anything to go by.
Rumours of the merger, which would have created a $140 billion insurance behemoth, began circulating last December, but doubts over the deal quickly followed.
Nearly a year later, Cigna has confirmed that the merger is officially off the cards.
"In light of recent and persistent speculation, The Cigna Group expects to communicate that the company is not pursuing a combination with Humana (NYSE:HUM)," Cigna said in a statement.
"The Cigna Group (NYSE:CI) remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close," it added.
The decision was met with a 7.9% pre-market rally on Cigna shares on Monday.
Humana shares went in the opposite direction, tumbling more than % in the pre-market.