According to trade publication Reorg Research,the relevant US Department of Justice staff will not oppose the merger of drugstore chain/pharma benefits manager CVS Health with health insurer Aetna,sending a sigh of relief through the sector and an uptick in share prices.The 69 billion dollar transaction is a move seen at least partly as a reaction to the entry of electronic commerce giant Amazon into the health care field.Another possible reaction was by health insurer Cigna as it seeks to merge with pharma benefits manager Express Scripts.
In January 2018,Amazon,Berkshire Hathaway and JP Morgan Chase,which collectively employ more than 500,000 people,announced they are forming a joint enterprise to provide care for staff at a reasonable cost by enabling simplified,high quality and transparent health care through technology.JP Morgan Chase CEO Jamie Dimon explained:
The three of our companies have extraordinary resources,and our goal is to create solutions that benefit our US employees,their families,and,potentially,all Americans.*
Reorg Research provides automated docket updates;breaking news;and analysis for distressed debt investors;lawyers;and restructuring professionals.The New York-based company seeks to provide independent,insightful and timely market intelligence and analysis for better business and investment decisions.*
The DOJ staffers will submit their recommendation to their superiors for final approval at the end of July.*
Aetna Inc (AET),Cigna Inc (CI),CVS Health (CVS),Express Scripts (ESXR)
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