CVS to Keep Aetna Headquarters in Hartford, Conn. -- Update
13 January 2018 - 8:36AM
Dow Jones News
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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