CVS Health announces its plans to buy health insurer Aetna for $69 billion in cash and stock, bringing one of the largest providers of pharmacy services together with the No. 3 U.S. health insurer.

When did CVS purchase Aetna?

CVS Health and Aetna have closed their $69 billion merger. CEO Larry Merlo has outlined CVS’ vision for new stores that will include added health services. CVS and Aetna announced the deal in December 2017 and received preliminary approval from the Department of Justice in October.

Is Aetna part of CVS Health?

CVS Health-owned Aetna on Monday rolled out a plan design that would steer patients toward its parent company’s brick-and-mortar locations — a key concern of antitrust regulators in reviewing the almost $69 billion megamerger that closed in 2019.

What insurance company bought CVS?

insurer Aetna
A federal judge reviewing a Justice Department decision to allow U.S. pharmacy chain and benefits manager CVS Health Corp to merge with health insurer Aetna said on Wednesday that the agreement was in fact legal under antitrust law.

Did CVS buy Walgreens?

Walgreen Company, d/b/a Walgreens, is an American company that operates as the second-largest pharmacy store chain in the United States behind CVS Health. Under the terms of the purchase, the two companies merged to form a new holding company, Walgreens Boots Alliance Inc., on December 31, 2014.

How is Aetna Stock being exchanged for CVS stock?

Under the terms of the transaction, each outstanding share of Aetna common stock is being exchanged for $145.00 in cash and 0.8378 shares of CVS Health common stock. CVS Health is not issuing any fractional shares in the transaction.

What is the total value of the Aetna merger?

Including the assumption of Aetna’s debt, the total value of the transaction is $78 billion. The combined company’s shares are listed on the New York Stock Exchange under the ticker symbol “CVS.” The Aetna brand name will continue to be used in reference to the health insurance products.

Who was involved in the acquisition of Aetna?

As part of the agreement reached with the DOJ, Aetna entered into an asset purchase agreement with a subsidiary of WellCare Health Plans, Inc. (NYSE: WCG) for the divestiture of Aetna’s standalone Medicare Part D prescription drug plans, which have an aggregate of approximately 2.2 million members.

Who is the CEO of CVS Health Corporation?

“Today marks the start of a new day in health care and a transformative moment for our company and our industry,” declared CVS Health President and Chief Executive Officer Larry J. Merlo.