US Drugstore Chain to Buy Aetna for $69b

US drugstore chain CVS Health announced it would buy medical insurer Aetna for about $69 billion, in a move that would create a new giant in the healthcare sector, AFP reported. The deal would see Aetna shareholders receive $207 per share, with $145 in cash and the rest in newly issued stock. The overall cost of the transaction rises to $77 billion with the assumption of Aetna’s debt. “The transaction is expected to close in the second half of 2018,” CVS said in a statement, adding: “It is subject to approval by CVS Health and Aetna shareholders, regulatory approvals and other customary closing conditions.” Talks between the two have been reported since late October and are believed to have been driven by rumors of online shopping behemoth Amazon’s entry into the drugstore market. The merger between CVS and Aetna comes amid rising medical costs for many citizens and employers, including prescription medicines. The healthcare industry, meanwhile, is preparing for possible cuts to government-funded programs such as Medicaid as a result of Republican tax cuts.