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CVS Health Corp To Buy Aetna Inc For $69 Billion

CVS Health Corp To Buy Aetna Inc For $69 Billion ebuddynews

US pharmacy chain operator CVS Health Corp (NYSE: CVS ) said on Sunday it had agreed to buy US insurer Aetna Inc (NYSE: AET ) for $ 69 billion in the largest corporate takeover. That goes for the year.

The operation will combine one of the largest pharmacy benefit managers and pharmacy operators with one of the oldest health insurers, whose businesses range from employer insurance to government plans across the country.

The agreement comes after Aetna’s plan to acquire lesser health insurer Humana Inc (NYSE: HUM ) was blocked in January by a US judge due to antitrust concerns. A proposed pair combination between Anthem Inc (NYSE: SMTA ) and Cigna Corp (NYSE: CI ) was also rejected.

CVS Health Corp To Buy Aetna Inc For $69 Billion ebuddynews

Aetna shareholders will receive $ 207 per share in the agreement with CVS Health the companies said. According to the agreed terms, Aetna shareholders will receive 145 dollars per share in money and 0.8378 titles from CVS Health for each Aetna paper, sources said.

Social Media initially reported the terms of the agreement earlier Sunday.

Aetna shareholders will have about 22 percent of the combined company, while those of CVS Health will own the rest.

CVS Health Corp To Buy Aetna Inc For $69 Billion ebuddynews

CVS plans to use its low-cost clinics to save about $ 1 billion a year in health costs for the nearly 23 million Aetna medical members.

An insurer combined with a pharmaceutical benefits administrator would also be better positioned to negotiate lower drug prices and the merger could bolster retail sales at CVS stores.

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