HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) and Humana (NYSE: HUM) have mutually ended their merger agreement following a ruling from the United States District Court for the District of Columbia granting a United States Department of Justice request to enjoin the merger.

“While we continue to believe that a combined company would create greater value for health care consumers through improved affordability and quality, the current environment makes it too challenging to continue pursuing the transaction,” said Aetna Chairman and CEO Mark T. Bertolini. “We are disappointed to take this course of action after 19 months of planning, but both companies need to move forward with their respective strategies in order to continue to meet member expectations. Our mutual respect for our companies’ capabilities has grown throughout this process, and we remain committed to a shared goal of helping drive the shift to a consumer-centric health care system.”

Aetna will pay Humana $1 billion as a result of the termination of the merger agreement. Additionally, Aetna has terminated its previously announced agreement to sell certain Medicare Advantage assets to Molina Healthcare, Inc. (NYSE: MOH) and will pay the applicable fees associated with that termination.

“On behalf of Aetna, I would like to thank everyone involved in the transaction for their commitment to improving how health care is delivered,” Bertolini concluded.

Aetna Announces Full Redemption of Special Mandatory Redemption Notes

In related news, Aetna announced today that it will redeem for cash on or about March 16, 2017:

• The entire $1.650 billion aggregate principal amount outstanding of its 1.900% Senior Notes due June 7, 2019 (CUSIP 00817 AT5);
• The entire $1.850 billion aggregate principal amount outstanding of its 2.400% Senior Notes due June 15, 2021 (CUSIP 00817 AU2);
• The entire $2.800 billion aggregate principal amount outstanding of its 3.200% Senior Notes due June 15, 2026 (CUSIP 00817 AW8);
• The entire $1.500 billion aggregate principal amount outstanding of its 4.250% Senior Notes due June 15, 2036 (CUSIP 00817 AY4); and
• The entire $2.400 billion aggregate principal amount outstanding of its 4.375% Senior Notes due June 15, 2046 (CUSIP 00817 AX6).

About Aetna

Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 46.7 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews