Health insurer Aetna Inc (AET.N) on Friday said it would buy smaller rival Humana Inc (HUM.N) for about $37 billion in cash and stock, in the largest ever deal in the insurance industry.
The combination will push Aetna close to Anthem Inc’s (ANTM.N) No.2 insurer spot by membership, and would nearly triple Aetna’s Medicare Advantage business.
The deal will face antitrust scrutiny but if it goes through it would dwarf the previous largest insurance deal announced just this week, where Swiss property and casualty giant ACE Ltd (ACE.N) announced it was buying Chubb Corp (CB.N) for $28 billion. It would also dwarf Anthem Inc’s purchase of WellPoint in 2004 for $16.6 billion.
Humana Tennessee Headquarters Based in Brentwood
Humana has been told that their Louisville, Ky. national corporate offices will remain there. No word on the Tennessee headquarters which is based in Brentwood,Tn. and the effects of the buyout are available at this time.
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