Retail pharmacy chain CVS Health to acquire health insurer Aetna for $69bn

Healthcare industry news : CVS Health, a US-based retail pharmacy chain and healthcare company has agreed to acquire Aetna, a healthcare benefits company for a sum of $69 billion in a move to transform consumer health care experience.

The transaction will also see assumption of $8 billion of the health insurance provider Aetna’s debt by CVS Health.

Under the merger agreement, CVS Health will acquire all the shares of the Connecticut-based healthcare benefits company for $207 per share.

CVS Health acquisition of Aetna is expected to fill an unmet requirement in the existing health care system. It also helps in delivering access to high-quality health care in reduced cost, local settings in the community, at home or via digital tools, stated the retail pharmacy chain based in Rhode Island.

A CVS Pharmacy Store. Photo courtesy of Smarty9108/Wikipedia.org.

Commenting on CVS Health acquisition of Aetna, Larry J. Merlo – CVS Health President and CEO said: “This combination brings together the expertise of two great companies to remake the consumer health care experience. With the analytics of Aetna and CVS Health’s human touch, we will create a health care platform built around individuals.

“We look forward to working with the talented people at Aetna to position the combined company as America’s front door to quality health care, integrating more closely the work of doctors, pharmacists, other health care professionals and health benefits companies to create a platform that is easier to use and less expensive for consumers.”

CVS Health says that the merger deal is a natural evolution for both the firms as they look to place the consumer at the center of health care delivery.

While CVS Health has transformed into an integrated health care company steadily, on the other hand, Aetna has expanded from being a traditional health insurer to concentrate more on the well-being of consumers.

Mark T. Bertolini – Aetna chairman and CEO, commenting on CVS Health acquisition of Aetna, said: “This is the next step in our journey, positioning the combined company to dramatically further empower consumers. Together with CVS Health, we will better understand our members’ health goals, guide them through the health care system and help them achieve their best health.

“Aetna has a proud tradition of continually innovating to address unmet consumer needs and providing leading products and services to the marketplace.”

CVS Health will hold about 78% in the combined company while Aetna will hold the remainder 22% ownership although the latter will be operated as a separate unit post merger.

The CVS Health Aetna merger is anticipated to be completed in the second half of 2018. It would need approvals from the respective shareholders of CVS Health and Aetna, and regulators apart from satisfying other customary closing conditions.

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