CVS to Keep Aetna Headquarters in Hartford, Conn. -- Update

Date : 13/01/2018 @ 08:36
Source : Dow Jones News
Stock : Cvs Health Corp. (CVS)
Quote : 65.12  0.0 (0.00%) @ 18:00
CVS Health Corporation share price Chart

CVS to Keep Aetna Headquarters in Hartford, Conn. -- Update

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By Joseph De Avila 

CVS Health Corp. has decided to keep Aetna Inc. in Hartford, Conn., reversing the insurer's plan announced last year to move its corporate offices to New York City.

"We have no plans to relocate Aetna's operations from Hartford," CVS spokesman David Palombi said, adding that the company had met with Connecticut Gov. Dannel Malloy and Hartford Mayor Luke Bronin on Thursday.

The planned move was put on hold after CVS's December announcement that it would buy Aetna for $69 billion. Aetna said at the time the merger was announced that all of its locations would be evaluated as part of its integration with CVS.

CVS will maintain its corporate headquarters in Rhode Island.

The reversal is a win for Connecticut, which has lost other corporate residents in recent years and has been struggling with budget shortfalls and declining population. The city of Hartford is in its own financial straits, relying on state aid to balance its budget.

"I'm thrilled that CVS has confirmed that Aetna will continue to call Hartford home," Mr. Malloy said.

At the time that Aetna announced its decision to leave Hartford, where it has been based since 1853, the insurer said it chose to move to New York to tap a more robust pool of talent as it sought to reposition itself as a consumer-oriented health company. The move would have affected 250 jobs, the company said.

Earlier this week, New York City said it was shelving a $9.6 million incentive package offered to Aetna. The insurer had planned to move into a 170,000-square-foot Chelsea building developed by Vornado Realty Trust and Aurora Capital Associates.

An Aetna spokesman said Friday, "With regard to New York City, all Aetna locations will be evaluated as part of the integration planning process."

Write to Joseph De Avila at joseph.deavila@wsj.com

 

(END) Dow Jones Newswires

January 12, 2018 16:21 ET (21:21 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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