**Cigna Corporation has officially announced the abandonment of its planned acquisition of Humana Inc.**, marking a dramatic shift in the healthcare landscape and triggering widespread industry reverberations. This decision, fueled by regulatory pressures and strategic reevaluations, underscores the evolving dynamics of the healthcare sector. In a bold move to reward shareholders, Cigna has unveiled an aggressive $10 billion share buyback program, leveraging its financial strength to bolster investor confidence. This blog post delves into the implications of Cigna's strategic withdrawal from the Humana deal, explores the rationale behind this unexpected shift, and analyzes how the massive share repurchase plan aligns with Cigna's overarching vision for sustainable growth and market leadership.

**Note:** As of December 10, 2023, there has been no public information about Cigna abandoning an acquisition of Humana or announcing a share buyback program of the magnitude mentioned. This content is based on the hypothetical scenario provided and should not be interpreted as factual information.

 Cigna Abandons Acquisition of Humana, Announces $10 Billion Share Buyback

**Cigna Corp. (NYSE: CI)**, a major health insurance provider in the United States, has terminated its pursuit of a potential acquisition of **Humana Inc. (NYSE: HUM)**. The news came just hours after Cigna announced a significant expansion of its share repurchase program, committing an additional $10 billion to buy back its stock.

**Price Disagreement Halts Negotiations:**

The deal, expected to exceed $60 billion in value, faced potential regulatory hurdles due to antitrust concerns. However, sources revealed that the primary reason for the termination was a disagreement between the companies on the acquisition price. The possibility of a future merger remains open, despite this setback.

**Cigna Prioritizes Share Repurchase:**

Cigna has transitioned to share repurchases as its primary capital allocation strategy. The company increased its existing repurchase program by $10 billion, raising the total authorized amount to $11.3 billion. This move signifies Cigna's commitment to shareholder value enhancement and is viewed positively by investors.

**Market Reaction:**

Both Cigna and Humana experienced slight stock price increases following the announcement. Cigna gained 0.38%, while Humana rose 0.25%. The market appears cautiously optimistic about Cigna's strategic shift and the potential for continued value creation through share repurchases.

**Healthcare Landscape Impact:**

The termination of the Cigna-Humana deal represents a missed opportunity for consolidation in the U.S. health insurance market. This could potentially lead to increased competition and further pressure on healthcare costs. Cigna's expanded share repurchase program, however, is expected to boost investor confidence and position the company for future growth opportunities.

**Frequently Asked Questions:**

• ***Why did the Cigna-Humana deal fall through?*** Both parties could not agree on a purchase price.
• * **What will Cigna do with the additional $10 billion in share repurchases?** The company will return capital to investors to enhance shareholder value.
• * **How will the terminated deal impact the healthcare industry?*** Increased competition and pressure on healthcare costs are potential outcomes.
• * **What are Cigna's prospects for future growth?*** The company plans to focus on organic growth and strategic acquisitions.

**Conclusion:**

The developments surrounding the Cigna-Humana deal highlight the dynamic nature of the U.S. health insurance market. Cigna's commitment to shareholder value creation is evident in its expanded share repurchase program, and the company is well-positioned for future growth.