Health insurer Anthem nears $48 billion deal to buy Cigna - WSJ

(Reuters) - Health insurer Anthem Inc is nearing a deal to buy smaller rival Cigna Inc for more than $48 billion, the Wall Street Journal reported on Wednesday.

Cigna shares jumped 6.5 percent in after-hours trading to $161 while Anthem's shares were marginally lower after closing at $155.10 on Wednesday.

Anthem is expected to pay about $187 per share for Cigna in a deal that could be announced as soon as Thursday, the Journal said, citing people familiar with the matter.

The deal still hasn't been signed and the timing could still slip, the Journal added.

Anthem and Cigna were not immediately available for comment outside regular U.S. working hours.

 

A merger between the two health insurers would follow Aetna Inc's deal to buy Humana Inc for $37 billion, part of an industry consolidation following the Supreme Court's decision to uphold the Obamacare reforms.

Anthem said in June that it had made several offers for Cigna but a deal had been delayed due in part to differences over who would lead the company and corporate governance. Cigna also said it was concerned other members of the Blue Cross Blue Shield Association would be an obstacle.

(Reporting by Amrutha Penumudi in Bengaluru; Editing by Simon Jennings and Rodney Joyce)