CVS-AETNA MERGER DELAYED AS NEW YORK, NEW JERSEY NEGOTIATE
The plan to get everyone together to close CVS’s $69 billion acquisition of Aetna before Thanksgiving didn’t work out. The closing was expected to be by Nov. 22 but has been delayed until two New York and New Jersey approve the merger.
In a new financial filing Nov. 19, the company is still short final approval from regulators in the two states. So far, it has clearance from 26 of 28 states.
“CVS Health has made significant progress and is in the final stages of the approval process with the remaining two states,” the filing stated. “CVS Health is confident that these remaining approvals will be secured.”
Pushback from New York came in October when New York State Superintendent of Financial Services Maria Vullo criticized the merger and raised concerns about higher premiums and drug costs.
Analysts, however, called the rhetoric a “negotiating tactic” and remained confident the state would approve the deal.
CVS sweetened the deal with California in early November by agreeing to invest $240 million into the state’s healthcare system. California then approved the merger. VTN