Sunday, CVS Health Corp announced that they had agreed to acquire Aetna Inc. in a deal worth 69 billion dollars. Aetna will operate as a separate unit and will maintain its existing leaders to run the business. Two of its directors and its CEO, Mark Bertolini, will join the board of CVS. Aetna’s shareholders will own about 22 percent while the rest will be owned by CVS shareholders. This deal comes after Aetna failed to acquire Humana Inc. back in January as the deal was blocked due to antitrust concerns. CVS hopes to use its clinics to provide service to Aetna’s 23 million members. It is hoped that the combined companies can lower drug prices and boost sales at CVS’s retail stores. While this deal appears to be able to be approved with little difficulty, there is some concern that given the government’s interest in vertical mergers recently, there could be some problems. Still, it appears the deal will be closed without any serious issues. With CVS acquiring Aetna a question comes to mind, is this deal going to be good for American consumers?
WTNH News8 covering the reported deal between CVS and Aetna:
Is the merger of CVS and Aetna good for American consumers? Will this deal improve healthcare costs across the country? Or, are corporations getting too big and powerful?
Page 2: Arguments in favor of the merger