The Justice Department on Tuesday approved Alaska Air Group Inc.’s acquisition of Virgin America Inc., but imposed conditions requiring Alaska Air to scale back its route partnership with American Airlines Group Inc.

The $2.6 billion merger deal, struck in April, would create the fifth-largest U.S. airline by traffic, surpassing JetBlue Airways Corp., which lost a bidding war with Alaska Air for Virgin America.

Even... </s> AT&T wasted little time celebrating after a federal judge approved its $85 billion acquisition of content giant Time Warner, saying in a statement it will move quickly to close the deal on or before 20 June.

In a ruling handed down today (12 June), Judge Richard Leon rejected the US Department of Justice’s (DoJ) argument the deal would harm competition and consumer choice. He approved the transaction without any conditions.

AT&T general counsel David McAtee said in a statement the operator is “pleased” with the decision and looks forward to offering consumers “video entertainment that is more affordable, mobile and innovative”.

The defeat is the first for the DoJ in an antitrust case since 2004.

Implications

 Leon’s ruling reaffirmed the government’s tendency to approve deals between companies in non-competing spheres, which are known as vertical mergers. Analysts said the decision paves the way for a flurry of additional merger activity.

Recon Analytics founder Roger Entner told Mobile World Live the loss will make it tougher for DoJ antitrust head Makan Delrahim to fight other tie ups, including the proposed merger between Sprint and T-Mobile US.

“It will make M&A a lot easier because the DoJ has been weakened. Usually the DoJ has an 80 to 90 per cent win record when it comes to suing. The government usually doesn’t lose in court, so that’s a major setback for Makan Delrahim. He has a loss chalked up.”

The victory also means perks could soon be on the way for AT&T customers.

During the trial, AT&T disclosed plans to launch a new OTT video bundle which will include Time Warner channels. The service will cost most users $15 per month, but AT&T said its unlimited wireless customers will gain access for free. </s> (Reuters) - A federal judge on Wednesday ruled against U.S. health insurer Anthem Inc’s (ANTM.N) proposed $54 billion merger with smaller rival Cigna Corp (CI.N), derailing an unprecedented effort to consolidate the country’s health insurance industry.

The U.S. Justice Department sued in July to stop Anthem’s purchase of Cigna, a deal that would have created the largest U.S. health insurer by membership, and Aetna Inc’s AET.N planned $33 billion acquisition of Humana (HUM.N).

The merger would have worsened an already highly concentrated market and is likely to raise prices, Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia said while issuing the ruling against Anthem’s deal.

Last month, a different U.S. judge ruled against Aetna’s proposed deal for Humana.

Government antitrust officials argued that both deals would lead to less competition and higher prices for Americans. The acquisitions would have reduced the number of large national U.S. insurers from five to three.

Jackson had separated the Justice Department’s case into two trials. Her ruling focused only on the first one in which the Justice Department argued that the tie-up would hurt the ability of large national employers to get competitive rates for the health coverage they provide workers.

The second trial considered overlaps in the two insurers’ business selling health benefits to individuals, and administering Medicare Advantage coverage to the elderly.

Anthem argued that there was enough competition because large companies with more than 5,000 employees often used multiple smaller players in the national market, but the judge disagreed.

“Regional firms and new specialized ‘niche’ companies that lack a national network are not viable options for the vast majority of national accounts, and they will not ameliorate the anticompetitive effects of this merger,” Jackson wrote.

Cigna intends to carefully review the opinion and evaluate its options in accordance with the merger agreement, it said in a statement.

Anthem said on Thursday that it intends to promptly file a notice of appeal and request an expedited hearing of its appeal to reverse the court’s decision.

PROTECTING CONSUMERS

Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division said the ruling had prevented American consumers from facing higher health insurance premiums and less innovation.

Bill Baer, who was head of the Justice Department’s antitrust division when it decided to sue to block both the insurance deals but has since left the agency, also hailed the decision. “Together with the decision on Aetna and Humana, this preserves five large national providers of critically important health insurance products,” he said.

The fifth player, UnitedHealth Group Inc. (UNH.N) was not involved in the deals.

Some Wall Street analysts expect all four of the companies to now move on, although Aetna and Humana have not committed to doing so. Their deal expires Feb. 15.

“The likelihood of success in an appeal would be very low,” said Matthew L. Cantor, a partner in the law firm of Constantine Cannon in New York. He noted points in the judge’s order about the concentrated national market, the high barrier to entry for competitors, and the companies’ roles as direct competitors.

The deals were announced at a time when former President Barack Obama’s national healthcare reform law was fully in place and the four insurers were growing in the individual insurance market it established. The insurers said new costs, from higher taxes to investments in new Obamacare products, were driving their need for scale.

That landscape is less certain now. Aetna and Humana have cut back Obamacare enrollment for 2017 after losses, and President Donald Trump and fellow Republicans are weighing a “repeal and replace” path for Obamacare.

More deals may be in the offing, JPMorgan analyst Gary Taylor said in a research note. “Given Anthem and Cigna’s pursuit of Humana in 2015, we think new potential combinations could emerge.” He does not expect shares in either Anthem or Cigna to move given that investors had expected this ruling.

Cigna is entitled to receive from Anthem a $1.85 billion break-up fee if the deal fails to win regulatory approval, according to the merger agreement. The agreement also requires Cigna to have put forth its best effort on that front.

The office building of health insurer Anthem is seen in Los Angeles, California February 5, 2015. REUTERS/Gus Ruelas

But Anthem and Cigna disagreed about the deal in court, Jackson wrote in her order, with Cigna refusing to sign off on Anthem’s interpretation of how the companies could garner savings.

Anthem is the largest member of the Blue Cross Blue Shield Association and operates BCBS plans in 14 states. It and said it could apply its discounts to Cigna members while Cigna said its collaborations with doctors would save money.

Pre-merger integration was stalled and incomplete, the judge said. </s> A federal judge Monday blocked the proposed merger of health insurers Aetna Inc. and Humana Inc. on antitrust grounds, a potentially fatal legal blow to the $34 billion deal.

U.S. District Judge John D. Bates ruled the Justice Department had proven its case that the merger would unlawfully threaten competition.

The judge said the transaction could mean higher prices and reduced services for seniors who purchase the private Medicare plans known as Medicare Advantage. He also said the merger would harm competition on public insurance exchanges in parts of Florida.

Aetna and Humana didn't immediately respond to requests for comment. Shares of the companies fell 2.2% and 2.4%, respectively, in midday trading.

Aetna and Humana announced their planned merger in July 2015, saying the deal would allow them to offer more cost-effective products by combining their strengths and becoming more efficient. Justice Department antitrust enforcers filed a lawsuit challenging the transaction a year later. A trial took place last month.

The Aetna-Humana deal is one of two major health insurance mergers being challenged by the Justice Department. The department simultaneously sued to block the proposed combination of Anthem Inc. and Cigna Corp. A trial in that case took place in the same courthouse and a different judge, Amy Berman Jackson, is expected to rule soon.

The lawsuits were among the last major law enforcement actions taken by Obama administration antitrust officials. </s> U.S. District Judge John D. Bates in Washington ruled Monday that the transaction violates antitrust laws by reducing competition among insurers. Click here to read the ruling in its entirety.

The U.S. Justice Department sued in July to block the merger over fears it would create a monopoly in the Medicare Advantage market.

The proposed merger made big news in Louisville when it was first announced in 2015, prompting a news conference in which Mayor Greg Fischer expressed optimism about potential job growth in the city.

PREVIOUS STORIES

+ Aetna-Humana merger lawsuit set to begin

+ Aetna CEO positive on Louisville job outlook amid Humana takeover

+ Aetna reaches deal to buy Humana for $37 billion

Meanwhile, the Justice Department is embroiled in a second similar antitrust suit - this one a proposed $54 billion merger between Anthem and Cigna. </s> The U.S. Department of Justice approved the $26 billion between Sprint Corp. and T-Mobile U.S., the department said Friday.

The approval clears a major hurdle for the proposed deal between the two telecom giants.

“With this merger and accompanying divestiture, we are expanding output significantly by ensuring that large amounts of currently unused or underused spectrum are made available to American consumers in the form of high-quality 5G networks,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.

As part of its Justice Department agreement, both carriers will be required to sell assets including prepaid brand Boost Mobile to satellite TV provider Dish Network Corp.

Dish will also get the first crack to purchase telephone towers that T-Mobile declares redundant, the Justice Department said.

Those conditions would make Dish a new, fourth wireless competitor taking Sprint’s place in the marketplace.

“Today’s settlement will provide Dish with the assets and transitional services required to become a facilities-based mobile network operator that can provide a full range of mobile wireless services nationwide,” Mr. Delrahim said.

The Justice Department also announced that the attorneys general for five states opposing the deal reached a settlement. In June, the officials filed a lawsuit in a New York federal court to block the merger. They argued the deal will cost consumers more than $4.5 billion annually. </s> Six months after the U.S. Department of Justice and attorneys general from eight states and the District of Columbia sued to stop the merger of insurance giants Aetna and Humana, the federal judge in the case has blocked the deal from moving forward.

The DOJ had argued that the combination of these two companies would “substantially” harm competition in the marketplace for both individual health insurance plans purchased through public exchanges, and for Medicare Advantage insurance plans.

The Medicare Advantage coverage posed the larger antitrust concern, as investigators for the government identified 364 counties in 21 states where they believe a combined Aetna/Humana would have market share levels for this insurance above what is generally considered to be unlawful.

The insurers countered that the DOJ was neglecting to account for traditional Medicare plans provided through state agencies. When combining Original Medicare and Medicare Advantage, argued the insurance companies, there are sufficient competition in the marketplace.

With regard to issues about the public exchanges, the DOJ concluded that, post-merger, Aetna and Humana would hold too much market share in 17 counties in three different states. The insurance companies claimed that is a non-problem, as Aetna is not offering plans in these exchanges for 2017.

In the end, D.C. District Court Judge John Bates sided with the DOJ and the states, concluding in his 158-page opinion [PDF] that the proposed merger is “likely to substantially lessen competition in Medicare Advantage in all 364 complaint counties,” and that the government was correct to not consider Original Medicare as a direct competitor to Advantage.

Health insurance exchanges in three Florida counties would also be adversely affected. The judge also notes that Aetna withdrew some selling insurance in the other counties mentioned in the DOJ complaint to “evade judicial scrutiny of the merger,” and was therefore not an indicator that the company wouldn’t simply re-enter those markets after the merger.

Aetna says it is weighing an appeal.

Today’s ruling was applauded by some consumer advocates, including our colleagues at Consumers Union, who had previously testified before the Senate Judiciary Committee and the California Department of Insurance about the potential negative impact of this merger.

“The Justice Department laid out strong proof at trial that the merger of these two health insurance giants would have seriously harmed consumers across the country, especially seniors using Medicare Advantage, leaving them with fewer choices, higher costs, and ultimately, with inferior coverage,” said George Slover, senior policy counsel at CU. “This problematic deal simply couldn’t be fixed, and we are pleased the court has agreed.” </s> NEW YORK: A US federal judge on Monday blocked Aetna's proposed US$37 billion acquisition of rival health insurer Humana, ruling the combination would stifle competition in the health sector.

US District Judge John Bates upheld the essential arguments of antitrust regulators who sued to block the deal, saying that combining two of the big five American health insurers would harm consumers.

He highlighted consumers in the "Medicare Advantage" programme for seniors, an alternative to the federal healthcare programme, and the three health exchanges in Florida set up under the Affordable Care Act.

"The Court concludes that the proposed merger is likely to substantially lessen competition," Bates said in a 158-page decision. "The proposed merger of Aetna and Humana will be enjoined."

Aetna, which would be forced to pay US$1 billion to Humana if the deal falls through, said it is considering appealing the decision.

But the decision to block the merger was applauded by US Justice Department antitrust chief Brent Snyder.

"Aetna attempted to buy a formidable rival, Humana, instead of competing independently to win customers," Snyder said in a statement. "Millions of consumers have benefited from competition between Aetna and Humana, and will continue to benefit because of today's decision to block this merger."

The decision could be a bad omen for the merger of two of the other big five American private insurers who sought to merge, Cigna and Anthem. A trial was held on the Cigna-Anthem merger with a different judge late last year, shortly before the start of the 13-day trial on Aetna-Humana.

The decision comes as President Donald Trump takes initial steps to dismantle the Affordable Care Act, also known as Obamacare. Congressional Republicans have said undoing the signature legislation of former president Barack Obama is one of their top priorities.

In afternoon trading, shares of Humana gained 1.8 per cent to US$204.15 and Aetna fell 2.8 per cent to US$119.08. Meanwhile, Anthem lost 0.5 per cent to US$149.89 while the Cigna added 0.4 per cent to US$145.38. </s> A U.S. federal judge blocked on Monday health insurer Aetna 's proposed $34 billion merger with rival Humana , saying it was illegal under antitrust law.

Judge John Bates of the U.S. District Court for the District of Columbia said the proposed deal would "substantially lessen competition in the sale of individual Medicare Advantage plans in 364 counties identified in the complaint and in the sale of individual commercial insurance on the public exchanges in three counties in Florida."

The Justice Department filed a lawsuit on July 21, 2016 to block Aetna's acquisition of Humana and Anthem 's purchase of Cigna , saying the two deals would lead to higher prices.
The U.S. Justice Department (DOJ) issues final approval for Alaska Airlines to acquire Virgin America, in a US$2.6 billion dollar merger. In exchange for approval, the DOJ requires Alaska Airlines to reduce its partnership with American Airlines.