07/26/2016

Justice Department Files Lawsuit Blocking Takeovers

U.S. antitrust officials have filed lawsuits to block Anthem Inc.’s takeover of rival health-insurer Cigna Corp. and Aetna Inc.’s deal to buy Humana Inc.

Justice Department officials, who are responsible for protecting competition, are concerned that the deals, which would transform the health insurance industry by turning its five biggest companies into three, would harm customers. While the companies may offer to sell assets to gain approval for the deals, that’s unlikely to sway antitrust officials. The companies could settle a lawsuit before or after one is filed.

Reportedly, the New York State Department of Financial Services had already signed off on the $37 billion takeover of Humana by Aetna.