California's insurance commissioner Dave Jones has recommended the US Justice Department to halt Aetna’s proposed $37bn acquisition of health insurer Humana.
The Californian regulator said that the deal is anti-competitive in California and across the country, is expected to increase insurance prices.
Jones has urged the national antitrust regulators to halt the deal, as California’s other insurance regulator said it had approved the Aetna-Humana deal with conditions.
Aetna spokesman T.J. Crawford was quoted by Reuters as saying: "We received approval earlier this week from the California Department of Managed Health Care, the only regulatory agency in the state with official oversight of our acquisition."
In last October, Humana stockholders approved the acquisition. The deal was first announced by both firms in July same year.
In the combined company, Aetna’s shareholders will own around 74% interest and Humana’s shareholders will own the remaining 26%stake.
Through its different subsidiaries, Humana provides medical insurance products and services and non-medical insurance products and services.
The firm provides individual insurance, including medical coverage, health insurance, dental insurance, and vision insurance.
Aetna offers a range of traditional, voluntary and consumer-directed health insurance products and related services.
Image: Aetna building in Hartford, Connecticut. Photo: courtesy of Sage Ross.