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Here comes another mega-merger: Aetna and Humana are reportedly close to a multi-billion deal

Bryan Logan   

Here comes another mega-merger: Aetna and Humana are reportedly close to a multi-billion deal
Stock Market2 min read

Aetna
A flurry of merger activity among the nation's largest health insurers appears to be reaching another turning point.

Aetna is reportedly on the verge of a deal to buy Humana, the Wall Street Journal reports.

The deal could be announced as early as this week.

The publication reported Thursday night that the deal would be among some of the largest amid what is shaping up to be a record year for mergers and acquisitions in the US.

As of market close Thurday, Kentucky-based Humana was valued at $28.9 billion.

Shares of the insurer have been spiking of late, as rumors of its imminent acquisition by Aetna were swirling. Humana's stock popped 8% one week ago Thursday.

Business Insider markets reporter, Akin Oyedele wrote last week that the Aetna-Humana collaboration is just part of "an intense five-way fight for consolidation" among the big healthcare insurers.

The motivation for such consolidation among the insurers is to cut costs for themselves and, they argue, for consumers as well.

In another area of the healthcare merger front, Cigna and Anthem have been locked in an acquisition chase of their own. Cigna in late June rejected what it called an "inadequate" $47 billion takeover bid from Anthem, to which Anthem responded by reiterating its offer less than a day later.

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