CVS Gets Department of Justice Approval for Aetna Deal

CVS-Aetna deal gets go-ahead from DOJ

On October 10, the US Department of Justice gave preliminary approval to the $69 billion deal between CVS Health (CVS) and Aetna (AET).

CVS Gets Department of Justice Approval for Aetna Deal

CVS Health, America’s largest pharmacy chain, proposed the acquisition of Aetna, the country’s third-largest insurance company, in December 2017 for $207 per share.

The clearance from the DOJ is among the most important milestones towards completing the deal. The transaction moved a step forward after Aetna agreed to divest its Medicare Part D business to WellCare Health Plans, as regulators were concerned about the overlap between Aetna’s and CVS Health’s Medicare Part D businesses. CVS Health aims to close the transaction in the fourth quarter of 2018.

“DOJ clearance is an important step toward bringing together the strengths and capabilities of our two companies to improve the consumer health care experience,” said Larry J. Merlo, CVS Health’s president and CEO.

CVS also announces adding more Aetna members to the board

CVS Health also announced that it would add three more Aetna directors to its board once the acquisition is completed, which would bring the total number of CVS Health board members to 16. The company had earlier announced the addition of Mark T. Bertolini, Aetna’s current chair and CEO to its board.

“We are delighted to welcome Fernando, Mark, Roger and Ed to the CVS Health Board,” said David W. Dorman, CVS Health’s chair. “Our shareholders will benefit from the depth of their knowledge of Aetna’s business and their complementary expertise, which will be essential to the combined company as we transform the way health care is delivered in America,” he added.