CVS Completes $70 Billion Acquisition of Aetna
29 November 2018 - 4:12AM
Dow Jones News
By Aisha Al-Muslim
CVS Health Corp. has completed its nearly $70 billion
acquisition of insurer Aetna Inc., the companies said
Wednesday.
The deal brings together one of the nation's largest drugstore
chains and pharmacy-benefit managers with the third-largest U.S.
health insurer by membership. Under the deal, Aetna is valued at
$212 a share, or about $70 billion. The transaction is valued at
$78 billion including debt.
Shares of CVS rose 1.1% in morning trading Wednesday, bringing
their gains over the past 12 months to roughly 11%.
New York state regulators on Monday gave their blessing for CVS
to takeover Aetna, clearing the last regulatory hurdle for the
deal. The New York State Department of Financial Services said CVS
and Aetna agreed to a range of consumer protections and said they
would spend $40 million on health insurance education measures.
Antitrust officials at the Justice Department gave the deal th e
green light in October, not long after Aetna agreed to sell its
Medicare prescription-drug business, which overlapped with a CVS
unit.
Earlier this month, CVS executives gave investors a window into
its strategy after closing the Aetna deal, with an eye on the
company becoming a one-stop shop for patients.
CVS Chief Executive Larry Merlo had said the combined company
will focus on reducing medical costs by increasing consumers'
adherence to prescription regimens, expanding its membership base,
and offering more services through its bricks-and-mortar stores.
CVS also said the combination would close gaps in care, reduce
unnecessary emergency-room visits, and move expensive therapies to
lower-cost care sites.
Mr. Merlo had said CVS expects to exceed its original goal of
stripping out $750 million of corporate expenses and other costs
from the combined organization.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
November 28, 2018 11:57 ET (16:57 GMT)
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