CVS Completes $70 Billion Acquisition of Aetna

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 [e-mail]

(END) Dow Jones Newswires

November 28, 2018 11:57 ET (16:57 GMT)

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