August 22, 2018

CVS seeks CT blessing for Aetna deal

Photo | CNN Money
Photo | CNN Money

Eight months after CVS Health announced its intention to acquire Hartford-based Aetna for $69 billion, state regulators will decide whether to give their blessing.

The Connecticut Insurance Department (CID) will conduct a hearing on Sept. 12 at 9 a.m. in the Gershon Fox Ballroom at 960 Main Street in Hartford.

CVS has asked CID to approve the proposed acquisition of various Aetna business units, including Aetna Life Insurance Company, Aetna Insurance Company of Connecticut, Aetna Health and Life Insurance Company, Aetna Health Inc., and Aetna Better Health Inc.

The hearing will include a period devoted to public comment, the agency said.

CID will weigh factors such as CVS' impact on the entities' financial stability and whether the proposed changes of control would substantially lessen competition or create a monopoly.

CVS is still seeking antitrust approval from federal regulators, but CEO Larry Merlo said on an earnings call earlier this month that the company is having a "productive discussion."

While CVS had previously said it expects the Aetna deal to close by year's end, Merlo said he now expects it to close late in the third quarter or early in the fourth.

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