Health insurer Aetna and rival Humana said on Tuesday they had mutually ended their $34 billion merger agreement.
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Aetna's decision comes weeks after a court ruled against the deal due to fears it would lower competition.
The companies announced the deal in July 2015, but the U.S. Justice Department sued to block the transaction in last July.
Aetna will pay Humana $1 billion as a result of the termination of the merger, the companies said.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty)