HARTFORD, Conn. _ Aetna Inc. has ended its 19-month effort to buy Humana Inc., ruling out an appeal of a federal court decision striking down the $37 billion health insurance deal as anticompetitive.
The two companies said Tuesday the decision was mutual.
Aetna Chief Executive Officer Mark Bertolini said the combined company would have improved the quality of health care and made it more affordable, but the "current environment makes it too challenging to continue pursuing the transaction."
Humana said it will release its 2017 financial guidance and an update on its strategic plan after the close of markets.
Shares of Aetna rose nearly 3 percent, to $125.57. Humana fell a fraction of 1 percent, to $205.90.
As required in the agreement, Aetna, based in Hartford, will pay the Louisville, Ky.-based Humana $1 billion to end the deal. Humana said it expects $630 million after taxes.
Aetna also has terminated its agreement to sell certain Medicare Advantage assets to Molina Healthcare Inc. and will pay "applicable fees." Aetna's deal with Molina was an attempt to divest itself of assets to allay concerns over competition.
