Friday, January 19, 2018

CVS offers to buy Aetna for US$66bn

The proposed acquisition of health insurer Aetna by drugstore operator CVS is poised to be the largest ever in health insurance history, according to Thomson Reuters analysis.

CVS Health is reportedly offering to acquire Aetna at a price of at least US$200 a share, or a total of US$66 billion.

CVS made the offer earlier this month, although the two companies have been in discussions about a potential deal for several months already, sources told Reuters.

The talks may not lead to a deal, and analysts said the move is a sign that CVS is scrambling to fortify itself against looming competition from Amazon.com, which is quietly exploring ways to expand into the pharmaceutical industry.

According to a Reuters report, the acquisition of Aetna could give CVS, the drugstore giant, more leverage in its price negotiations with drug makers.

However, the deal would be subject to stricter antitrust scrutiny.

In 2007, CVS acquired Caremark, a pharmacy benefits manager, which has more than 75 million plan members.

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