A PYMNTS Company

US: CVS makes more than $66 billion bid for Aetna

By  |  October 26, 2017

US pharmacy operator CVS Health has made an offer to acquire No. 3 US health insurer Aetna for more than US$200 per share, or over US$66 billion, people familiar with the matter said on Thursday, October 26.

A deal would merge one of the nation’s largest pharmacy benefits managers and pharmacy operators with one of its oldest health insurers, whose far-reaching business ranges from employer healthcare to government plans nationwide.

Healthcare consolidation has been a popular route for insurers and pharmacies, under pressure from the government and large corporations to lower soaring medical costs.

A tie-up with Aetna could give CVS more leverage in its price negotiations with drug makers. But it would also subject it to more antitrust scrutiny, according to the WSJ.

The deal could also help counter pressure on CVS’s stock following speculation that Amazon.com is preparing to enter the drug prescription market, using its vast e-commerce platform to take market share from traditional pharmacies.

Full Content: Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.