The deal still has to pass regulatory scrutiny but CVS expects the deal to save a potential $750 million in the second full-year after it passes. "There will be expanded opportunities to bring health care services to consumers every day", the companies added in a release.
Aetna CEO Mark T. Bertolini echoed Merlo, and said the merger would make the company more "competitive" and help improve healthcare for millions of Americans.
It's unlikely that CVS will really transform itself from a pharmacy company to an integrated health care company, says Martin Gaynor, a professor of economics at Carnegie Mellon University.
Under the terms of the deal, CVS will pay about $207 a share, said this person, who was not authorized to speak publicly about the transaction before it was announced.
Merlo said he and Bertolini wanted to create a health-care platform that's "easier to use and less expensive for users".
Authorities respond to shooting at high school in New Mexico
Farmington Municipal Schools wrote on Facebook all schools in the district went into preventive lockdown due to the incident. Kyle Lincoln from the San Juan County Sheriff Department told KRQE News 13 that police are still searching the school.
Michael Newshel, an analyst at Evercore ISI, said Aetna would likely need to divest some or all of its Medicare drug-benefits business in a CVS merger.
Wary of Amazon's much-rumored move into the pharmacy industry, the leaders of CVS and Aetna have met several times this year, conversations that eventually led to deal negotiations.
The deal comes as healthcare payers and pharmacies are responding to a shifting landscape, including changes in the Affordable Care Act, rising drug prices and the threat of competition from online retailers such as Amazon.com (amzn).
McLemore is skeptical the merger will lead to lower drug prices, as CVS suggests. The company might open more clinics or add services such as eye care or hearing aid centers.
That doesn't mean there's heightened hostility toward vertical deals at the Justice Department, but CVS might prefer the Aetna deal to go to the FTC given Delrahim's criticism of behavioral fixes, said David Kully, an antitrust lawyer at Holland & Knight in Washington and a former Justice Department attorney.
Independent PBMs have always been criticized for potential conflicts of interest with insurance company clients, because they could potentially keep cost savings from drug negotiations rather than passing them on to patients.
Jordan Peele, Simon Kinberg 'Twilight Zone' Reboot Greenlit At CBS All Access
It has already been remade twice, broadcast from 1985 to 1989 on CBS and again between 2002 and 2003 on the cable channel UPN. CBS All Access has greenlit a reboot of classic series The Twilight Zone with Jordan Peele attached.
Large corporate customers of Aetna are taking a wait-and-see attitude regarding the impact on costs, benefits experts have said.
He says the obvious motivation behind the merger is that CVS and Aetna can save money on prescription drugs by simplifying the complicated way medications are paid for, and eliminating one middlemen looking to make a profit. "In fact, it's more than just a step to go from where they are to becoming a health care hub".
GVC ups stakes in United Kingdom gambling with $5.2 billion Ladbrokes bid
Houlihan Lokey and Investec are advising GVC on the deal, while Ladbrokes Coral is working with Greenhill and UBS. Shares in Ladbrokes soared 28% to 174.2p in early trading on Thursday, while GVC climbed 8% to 979p.