By (Reuters) – Cigna (NYSE:CI) Group is not pursuing a combination with Humana (NYSE:HUM), the health insurer said on Monday (NASDAQ:MNDY), following recent media reports that it had revived a pursuit to buy its smaller rival.
Shares of Cigna rose more than 8% in premarket trading, while Humana fell 8%.
The company “remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close”, Cigna said in a statement.
Humana did not immediately respond to a Reuters request for comment.
Last year, Reuters reported that Cigna ended its attempt to negotiate an acquisition of Humana after the pair failed to agree on a price and announced a $10 billion worth of shares buyback.
Bloomberg News reported in October that Cigna had revived efforts to merge with Humana.
Cigna, primarily dealing with employer-sponsored healthcare plans, is in the process of selling its Medicare Advantage business, which manages government-backed health insurance for people aged 65 and older.
Medicare-focused insurers such as Humana have been under pressure due to high medical costs in providing the government-backed plans as older adults seek healthcare services.
Shares of Humana have gained nearly 13% and Cigna rose more than 2% since last week, as Donald Trump’s election as U.S. president for a second term raised optimism over the sector and hopes that the deal may pass antitrust scrutiny.