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CVS Health-Aetna deal OK'd by Justice Department

CVS Health entered into an agreement with the Department of Justice to move forward with its $69 billion acquisition of Aetna, the company said Oct. 10.

As part of CVS Health's agreement with federal officials, Aetna will sell its stand-alone Medicare Part D prescription drug plans to Tampa, Fla.-based WellCare Health Plans. WellCare will assume control of the 2.2 million-member business Dec. 31, assuaging any antitrust concerns from the department. Aetna will continue to provide administrative services and retain financial results for the plans through 2019.

The CVS Health-Aetna deal is still subject to some state regulatory approvals, though most of them have been granted. The companies maintain that the deal will close during 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 healthcare experience," said CVS Health President and CEO Larry J. Merlo, who is slated to lead the combined entity.

More articles on transactions and valuations:
Louisiana hospital enters negotiations with Ochsner as LifePoint exits market
For-profit hospital operator M&A update: 17 latest deals involving CHS, Tenet, HCA and LifePoint
OhioHealth to assume management of 84-bed hospital

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