Aetna Inc (NYSE:AET) and Humana Inc (NYSE:HUM) will not be merging after all as a federal judge blocked the move.
Judge John Bates of the U.S. District Court for the District of Columbia has stepped on the brakes, causing the two companies to remain separate for now. The merger would’ve been worth $34 billion.
The reason behind Judge Bates putting a halt to the merger has to do with antitrust considerations, noting that the combined Aetna-Humana company would take over too large of a portion of the market, thus reducing competition.
The two insurance companies may still make the the merger happen. Aetna said the company is reviewing the ruling and considering putting in an appeal that would be strong enough to warrant further consideration.
The U.S. Department of Justice had been seeking to block the acquisition since filing a lawsuit six months ago. The agency said such a move would result in higher prices.
It would be even more difficult for a lot of people to afford certain medications if prices went up due to the fact that newly-elected President Donald Trump announced plans to get rid of the Affordable Care Act — also known as Obamacare — creating health insurance problems for a lot of Americans.
AET stock fell 2.3% on the news, while HUM shares rose by a fraction of a percentage on Monday.
