U.S health insurer Aetna Inc is nearing an agreement to buy rival Humana Inc for about $34 billion in a cash and stock deal, people familiar with the matter told Reuters on Thursday.
One person said Aetna’s offer would value Humana at about $230 per share and a deal could be announced as early as Friday.
The offer, if it goes through, would make it the largest deal in the insurance industry since Anthem Inc bought WellPoint in 2004 for $16.6 billion.
A $230 per share offer would be at a premium of nearly 23 percent to Humana’s close on the New York Stock Exchange on Thursday.
Humana’s sale has been anticipated since May when it was first reported that Cigna Corp and Aetna were interested, and multiple sources confirmed to Reuters that the company was entertaining offers.
Anthem last month said it is pursuing Cigna despite that company’s rejection of its offers. Sources had previously told Reuters that Cigna was also vying for Humana.
