CVS Plans Business Merger In Rapidly Changing Health Industry

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Monday, March 19, 2018.

CVS Health Corp is another step closer to buying out a giant in the health insurance industry, Aetna. A proposed business merger has gained approval from shareholders in both companies. If the deal gains regulator approval as well, the ultimate buyout will take place for nearly $70 billion. There are other health industry companies, perhaps including some in California, also considering merging in the near future.

CVS says its Aetna purchase would help keep costs down for patients who currently face exorbitant emergency room fees throughout the nation. That's because the business merger proposal includes plans to install MinuteClinics in low-cost drugstores throughout the nation. A CVS spokesperson stated that these clinics will be able to provide at least 90 percent of the same services medical patients currently receive from their primary care providers.

Walgreens, Berkshire Hathaway and J.P. Chase & Company are major players in several other current merger proposals in the nation. Some merger analysts say investors may have some cause for concern regarding online networks, such as Amazon and other e-commerce companies. This is because the ease, convenience and relatively low cost of internet purchases threatens front-end retail store profits.

CVS remains a top pick for stock buyers in the health care sector. Federal regulators requested additional information from the company and its proposed buyout partner, Aetna. Time will tell whether regulators will seal the deal with a stamp of approval. Any California business owner with questions or legal needs pertaining to mergers and acquisitions can turn to an experienced business and commercial law attorney for support.

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