Aetna to pay Humana $1B if deal fails to close by set date

Hartford, Conn.-based Aetna would be required to pay Louisville, Ky.-based Humana $1 billion if Aetna’s $37 billion deal to acquire Humana does not close by June 30, 2016, according to a Securities and Exchange Commission filing by Humana.

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In addition, the SEC filing also addressed what would happen if the deal fell through all together. The merger agreement between Aetna and Humana states that if the deal is terminated under specified circumstances, including the termination by either party upon the other party’s change of recommendation or material breach of its “no shop” obligations, Aetna would be required to pay Humana a termination fee of $1.69 billion, and Humana would be required to pay Aetna a $1.31 billion termination fee.

Although it is anticipated the deal will face antitrust scrutiny, Aetna Chairman and CEO Mark Bertolini is confident the acquisition will pass antitrust review.

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Aetna inks $37B deal to acquire Humana: 5 things to know

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