(AP) – U.S. health insurer Cigna Group is reportedly back in talks to merge with Humana, a smaller rival, following last year’s failed attempt, according to Bloomberg News sources.
Recent informal discussions between the companies have sparked investor interest, with Humana’s stock rising 5% in after-hours trading and Cigna’s falling 4%.
Last year, negotiations between Cigna and Humana broke down over pricing, leading to a $10 billion share buyback announcement by Cigna. Despite this, sources suggested a potential future merger.
Earlier this year, Cigna made a $3.3 billion deal to sell its Medicare business to Health Care Service Corp.
If a merger were to happen, the combined company could be valued around $130 billion based on market values.
Humana has faced challenges this year, with a 40% decline in value due to decreasing enrollments in Medicare plans and rising medical care costs.
Both Cigna and Humana have declined to comment on the recent merger talks.
(This story has been refiled to correct a typo in paragraph 7)
(Reporting by Mariam Sunny in Bengaluru; Editing by Alan Barona)