US health insurer Humana’s stockholders have approved the company’s acquisition by US health insurer Aetna in a $37bn deal.
More than 99 percent of Humana’s stockholders voted in favour of the adoption of a merger agreement with Aetna, which was announced on 2 July 2015. The transaction is expected to be completed in the latter half of 2016.
It is reported that the deal will create the second largest managed care company in the US.
After the transaction is closed Aetna said it will make Louisville the headquarters for its Medicare, Medicaid and TRICARE businesses, and will maintain a significant corporate presence in Louisville, where Humana was founded.
Aetna Chairman and CEO Mark T. Bertolini said: "The acquisition of Humana aligns two great companies and will significantly advance our strategy of more effectively serving members in a rapidly changing health care industry."
Commenting on the deal, Bruce D. Broussard, president and CEO of Humana said: "Through the use of technology and integrated services to simplify the consumer experience, the combined entity will be even more effective in meeting the health needs of many more people — especially people with chronic conditions, who will benefit from Humana’s home health, pharmacy management, and data analytics programs."
The completion of this transaction remains subject to customary closing conditions, including expiration of the federal Hart-Scott-Rodino antitrust waiting period and approvals of state departments of insurance and other regulators.
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In July 2015, Life Insurance International (LII) reported that Fitch Ratings had placed Aetna on rating watch negative following Aetna’s merger agreement with Humana.
Fitch said the rating action reflects its concern about Aetna’s expected financial leverage metrics following the close of the transaction, as well as potential operational and/or earnings disruptions that could arise as these two very large and complex organizations are integrated.