While the $69 billion merger between CVS Health and Aetna has moved through the regulatory review process, CVS executives now expect the deal to close after Thanksgiving, according to a new public filing. Executives previously anticipated the transaction would complete before the holiday.
The merger brings together one of the nation’s largest pharmacy benefit managers (PBMs) and pharmacy retailers with the nation’s third largest health insurance provider.
So far, the deal has received approvals from 26 of the 28 required state departments of insurance. Most recently, California approved the deal, while New York has been one holdout.
The Department of Justice approved the deal in October on the condition that Aetna sell its Medicare Part D prescription drug business.
“CVS Health has made significant progress and is in the final stages of the approval process with the remaining two states,” the filing, submitted Nov. 20, reads. “CVS Health is confident that these remaining approvals will be secured. As a result, the acquisition is now expected to close after the Thanksgiving holiday.”
The deal is being closely watched as one of the largest transactions in the sector and a prime example of the ongoing consolidation across the healthcare space. Another major similar transaction includes the $67 billion merger between PBM company Express Scripts and health insurer Cigna, which closed in September.
CVS Health CEO Larry Merlo has previously commented on a new type of healthcare services delivery model the combined entity will create, by meeting people’s needs in their own communities. CVS operates approximately 1,100 walk-in medical clinics and 9,800 retail locations.
The deal also brought about executive shifts at CVS Health, including the departure of David Denton, formerly executive vice president and chief financial officer of the company. Eva Borrato, who was originally slated to step into Denton’s role after the transaction closed, moved into the role on Nov. 19. On the same day, James Clark assumed the role of CVS Health’s senior vice president, controller and chief accounting officer, according to the filing.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."