Anthem To Buy Cigna for $48 Billion, Shares Rally

Anthem reported today that it was buying rival Cigna for $48 billion in a deal that would create the nation’s largest health insurer by enrolment covering about 53 million US patients. Many are looking at the deal as a continuation of the consolidation in the health insurance sector. It was reported earlier this month that Aetana had bid $35 billion for Humana Inc  and made many believe that the deal today would change the landscape of the US health care would be altered on the back of the buyout frenzy that could transform five massive US health companies into just three.

Larger insures have been negotiating power to squeeze better rates from drug companies and health care providers. But the wave of consolidation could lead to fewer choices for consumers in certain markets. Many believe that regulators scrutinizing the two mega deals will be trying to assess whether these combined companies would have so much power that they could dominate markets and drive already high health care cost even higher.

The deal announced today is valued at $54.2 billion including debt. Shareholders of Cigna will receive $103.50 per share in cash and 0.5152 shares of Anthem stock for each of their shares. The companies put the total value at $188 per share. Anthem CEO during a conference call said that the combined company would advance affordability, choice, access and quality. Insurance industry experts believe that insurers are bulking up to negotiate with bigger hospital systems which are going through their own round of consolidation.  The merger’s impact would take time to be felt by consumers because insurers have already finalized most of their plans for coverage that starts in January. Analysts on the street are positive about the deal and believe it leads to higher efficiency and cost saving for both companies.

SEOPrix.com is a professional SEO company in New York, we offers high quality guest post, press release submission, link building, content marketing and more SEO services.

Latest articles

FOUR THINGS THAT DEFINE A GREAT KITCHEN RENOVATOR

Renovating your kitchen is one of those tricky things: do you do it yourself or leave it to a professional? For many...

FOUR WAYS TO MAKE YOUR KITCHEN LOOK LUXURIOUS

Thinking about getting the best kitchen renovations in Sydney, but don’t have the budget for it? Thinking that maybe you should go for flat...

THREE WAYS TO ENSURE YOUR LAWN IS PERFECT

The lawn can make or break a garden. When it is full of life, golden and sparkling with colour, it can be...

The Leading Newspaper Group in USA “Worlds Daily News”

"Worlds Daily News" is the only national color folio daily newspaper in the United States. It was first published on September 15,...

Similar articles