The acquisition of CVS-Aetna could depend on the antitrust approach under Trump – tech2.org

The acquisition of CVS-Aetna could depend on the antitrust approach under Trump



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Acquisition of CVS Health Corp. for $ 67.5 billion Aetna Inc. will test the Trump administration's approach to long-range corporate acquisitions, only weeks after the US government. UU He demanded to block an important telecommunications merger.

The health agreement unveiled on Sunday would create an industry giant with more than $ 240 billion in annual sales with a hand in insurance, prescription drug plan administration, retail pharmacies and corner clinics. The companies said the combination will save $ 750 million in costs and provide consumers with better and more efficient health care.

In the past, offers that combine companies from the entire business chain, such as a supplier and a distributor, have been considered to pose less anticompetitive risks than combinations of direct rivals. Last month, however, the Department of Justice sued to block that "vertical" merger between AT & T Inc. and Time Warner Inc., saying it would harm consumers and limit their media content choices.

"Obviously we are going to have a little scrutiny," said Aetna CEO Mark Bertolini. "We are prepared to deal with whatever comes to make this work."

Different agencies

How much scrutiny can depend on which federal agency reviews the takeover: the Department of Justice or the Federal Trade Commission. [19659003] Both scenarios present obstacles.

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