Business

/

ArcaMax

In acquisition, CVS to keep Aetna name for 5 years

Stephen Singer, The Hartford Courant on

Published in Business News

HARTFORD, Conn. -- Aetna Inc. will keep its identity for at least five years after it's purchased by CVS Health Corp., according to a filing with federal regulators.

The merger agreement filed Tuesday with the U.S. Securities and Exchange Commission dives into the details of the $69 billion blockbuster deal. It calls for maintaining Aetna as the primary brand for the insurance business of CVS and its subsidiaries for five years.

And it requires CVS to preserve for three years Aetna Foundation Inc., the charitable and philanthropic arm of Aetna, "in a manner consistent in all material respects" with Aetna's charitable mission and its name.

The two companies set a Dec. 3, 2018, deadline for the Rhode Island pharmaceutical company to buy the Hartford health insurer.

Under some circumstances, the "end date" may be extended by either company to March 3, 2019.

If the deal is terminated, CVS or Aetna may be required to pay a $2.1 billion termination fee to the other.

 

The two companies announced the $69 billion blockbuster deal Sunday. CVS said it's looking to expand into managing the entire range of patients' health, not just drug costs.

The two companies said personalized health care can be delivered by connecting Aetna's network of providers with greater consumer access through CVS. It includes more than 9,700 CVS pharmacy sites and 1,100 MinuteClinic walk-in clinics.

(c)2017 The Hartford Courant (Hartford, Conn.)

Visit The Hartford Courant (Hartford, Conn.) at www.courant.com

Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus