DOJ probe of Aetna-Humana deal extended

Health insurer Aetna will refile its premerger notification with the Department of Justice and the Federal Trade Commission to give the regulatory agencies additional time to review its proposed acquisition of Humana, according to forms filed this week with the Securities and Exchange Commission.

Advertisement

In July, Aetna entered into a definitive agreement to acquire all outstanding shares of Humana in a deal valued at $37 billion. Under the deal, Humana stockholders will receive $125 in cash and 0.8375 Aetna common shares for each Humana share.

Once the notification is refiled, a new 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvement Act will be initiated. During that time, the regulatory agencies may request additional information to determine if the transaction violates antitrust laws.

Hospitals have called for the DOJ to take a very close look at the transaction, which they believe might limit competition in some markets. However, Aetna Chairman and CEO Mark Bertolini believes the deal will pass antitrust review.

Aetna continues to project that the transaction will be completed in the second half of 2016.

More articles on payer issues:

2 CEOs who are shaking up healthcare: 10 things to know
How the ‘Big 5’ health insurers fared in Q2
WellCare posts Q2 turnaround of $59.5M

Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit

Advertisement

Next Up in Legal & Regulatory Issues

Advertisement

Comments are closed.