, Columnist
CVS-Aetna May Find Unlikely Ally in Regulators
Approval process for likely megamerger will give CVS time to put its hands on the money needed to finance deal.
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One of the biggest frustrations for companies pursuing mega-mergers is the regulatory approval process. It's long. It's cumbersome. And for CVS Health Corp., that may be a godsend.
CVS, the Woonsocket, Rhode Island-based drug-store chain and pharmacy-benefit manager, is said to be on the verge of a $66 billion takeover of Aetna Inc., a health insurer based an hour and a half away in Hartford, Connecticut. When the talks were initially reported in October, analysts and investors were dubious given that CVS doesn't have experience operating a major insurer. But the strategic rationale isn't so bonkers, as Gadfly's Max Nisen explained here, and the transaction is far enough along that an announcement may even come Monday.