Aetna Inc.

Aetna Inc company. specializes in health insurance. It is founded in 1853.

2017: The company is sold to CVS Health for $69 billion

In December, 2017 it became known that the network of drugstores CVS Health, largest in the USA, will purchase Aetna company which is one of leaders of the American market of health insurance, for $69 billion. Participants of merge call this transaction of the first in own way, directed to problem solving in the field of retail and health care.

Network of drugstores CVS Health, (2017)

According to terms of agreement, shareholders of Aetna will receive $207 counting on each security belonging to them — for $145 cash and $62 securities.

For Aetna the transaction marks strategy change after its attempt to sign the agreement with other company of health insurance — Humana — was blocked by federal court as contradicting the antitrust law.

This consolidation is one of the largest in 2017. It profitable to both parties as will allow insurance company to cut down expenses on medical care, and CVS Health will be able to bypass competitors.

It is noted that acquisition of Aetna will allow CVS to offer buyers lower prices of the medicines provided according to the recipe which the drugstore sells according to the program of allowance payment on medicines. The transaction will also positively affect insurance business of Aetna: the company will have an opportunity to lower additional payments, presumably only in drugstores of CVS.

After accomplishment of all formalities concerning the transaction three directors of Aetna, including the chairman of the board and CEO Mark Bertolini, will join Board of Directors of CVS. Aetna will function as an independent business unit within larger company headed by members of the current management team.

It is going to close the transaction in the second half of 2018 provided that it will be approved by regulating authorities and shareholders^[1].

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