U.S. Judge Approves CVS-Aetna Merger

Written by Haley Alber

et|icon_calendar|

September 5, 2019

et|icon_grid-3×3|

A federal judge on Wednesday formally approved the merger of CVS Health (NYSE: CVS) and U.S. health insurer Aetna, Inc.

Judge Richard Leon of the U.S. District Court for the District of Columbia signed off on the near USD 70 Billion deal after evaluating complaints that the merger would harm consumers. The transaction officially brings together one of America’s largest healthcare insurers and one of the largest pharmacy benefit managers.

Last year, the Justice Department approved the deal on the condition that the companies sell Aetna’s Medicare drug business to preserve competition. In November CVS completed its divestiture of the business to a subsidiary of WellCare Health Plans, Inc. (NYSE: WCG).

“CVS Health and Aetna have been one company since November 2018, and today’s action by the district court makes that 100 percent clear. We remain focused on transforming the consumer health care experience in America,” CVS said in a statement.

Critics of the newly approved deal include the American Medical Association and the AIDS Healthcare Foundation.

“Despite an unprecedented review that dragged many details of this merger into the light, today’s decision ultimately fails patients, will likely raise prices, lower quality, reduce choice, and stifle innovation,” said AMA President Patrice A. Harris, M.D., M.A.

CVS has been in the process of converting itself into a healthcare company. In June, the pharmacy chain said it will offer expanded health services through its new HealthHub store concept. Over the next two years the company plans to open 1,500 HealthHub stores which offer services like nutritional counseling and BMI screening.

Stock price

DAY LOW/HIGH

52 week low/high

Comparables

Related Articles

Amgen to Buy Celgene’s Otezla for $13.4 Billion

Amgen to Buy Celgene’s Otezla for $13.4 Billion

Amgen to Buy Celgene’s Otezla for $13.4 Billion0 Comments The American multinational biopharmaceutical company, Amgen (NASDAQ: AMGN) agreed to buy Celgene’s (NASDAQ: CELG) Otezla, which is a psoriasis treatment, for USD 13.4 Billion.The...

Pfizer to Merge Subsidiary with Mylan

Pfizer to Merge Subsidiary with Mylan

Pfizer to Merge Subsidiary with Mylan0 Comments Pfizer (NYSE: PFE) announced on Monday morning that its subsidiary, Upjohn will merge with Mylan (NASDAQ: MYL). Following the news, Mylan shares rose by 13% during Monday’s pre-market hours. Under...

CVS Shares Rise Amid Market Tumble

CVS Shares Rise Amid Market Tumble

CVS Shares Rise Amid Market Tumble0 Comments Despite the market tumbling lower on Wednesday, CVS Health Corporation (NYSE: CVS) reportedearnings that propelled the stock 5% higher in early morning trading. CVS raised its guidance for its...

Comments

Leave a Reply

avatar
  Subscribe  
Notify of