The Connecticut Insurance Department has approved CVS Health Corp’s $69 billion merger with Hartford-based Aetna Inc.
The approval is contingent on Aetna completing the sale of its entire standalone Medicare Part D prescription plan business to a subsidiary of WellCare Health Plans, according to the insurance department’s decision issued on October 17.
“Today’s approval means that Aetna will continue to call Connecticut its home for many years to come,” said Gov. Dannel P. Malloy in a statement. “CVS Health has an incredible record of corporate stewardship, and we welcome their leadership and commitment to keeping Hartford a center of excellence for the insurance business.”
The approval comes a week after the U.S. Department of Justice approved the merger, also with conditions around the sale of Aetna’s Medicare Part D prescription plan business. The merger must also be approved by several state insurance regulators before it can be finalized.
The sale “resolves competition concerns posed by this transaction and preserves competition in the sale of Medicare Part D prescription drug plans for individuals,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division last week.
CVS Health President and CEO Larry Merlo said in a statement that Connecticut is the company’s primary regulator, “so this approval represents a significant step forward.”
Merlo said the two companies expect to complete the transaction in the early part of the fourth quarter of this year. CVS’ fourth quarter runs October through December.
“CVS has a strong record of stewardship in its local communities, and we look forward, in combination with…TO READ MORE CLICK HERE