Summary
This 8-K filing from CVS Health Corporation (CVS) on October 10, 2018, provides a significant update regarding the proposed acquisition of Aetna. The company announced it has entered into a consent decree with the U.S. Department of Justice (DOJ) that allows the acquisition to proceed, contingent upon Aetna divesting its individual standalone Medicare Part D prescription drug plans. This development is a crucial step towards closing the highly anticipated transaction, which CVS Health continues to expect will occur in early Q4 2018. The divestiture required by the DOJ will be fulfilled through an asset purchase agreement with WellCare Health Plans, Inc. Investors should note that while this consent decree is a positive step, the transaction still requires final court approval and certain state-level regulatory clearances.
Key Highlights
- 1CVS Health and Aetna have reached a consent decree with the U.S. Department of Justice (DOJ) to allow the acquisition to proceed.
- 2The condition for approval requires Aetna to sell its individual standalone Medicare Part D prescription drug plans.
- 3The divestiture will be completed via an asset purchase agreement with WellCare Health Plans, Inc.
- 4CVS Health maintains its expectation for the transaction to close in early Q4 2018.
- 5Court approval of the consent decree and remaining state regulatory approvals are still pending.
- 6The filing includes a press release detailing the agreement with the DOJ.
- 7The company reiterates that this communication is for informational purposes and not an offer to sell securities.