CVS Acquisition of Aetna Now Expected to Close After Thanksgiving as Company Still Short Two Approvals

8:53 AM, Nov 20, 2018 — CVS Health (CVS) said in a filing with the Securities and Exchange commission on Tuesday that its $69 billion acquisition of Aetna (AET) will close after Thanksgiving, and that it has received a green light from all but two of the states in which it requested approval.

The company had said in its quarterly earnings report on Nov. 6 that it expected the Aetna deal to close by Thanksgiving. Management said in today’s SEC filing that the company has submitted all of the required change-in-control filings in 28 states in January, and so far has received approvals from 26 departments of insurance.

“CVS Health has made significant progress and is in the final stages of the approval process with the remaining two states,” the company said in the filing. “CVS Health is confident that these remaining approvals will be secured. As a result, the acquisition is now expected to close after the Thanksgiving holiday.”

In anticipation of the acquisition’s close, Eva Boratto has been appointed executive vice president and chief financial officer, and James Clark has been appointed as senior vice president and controller and chief accounting officer. The company had previously reported in SEC filings that Boratto and Clark would be appointed to their new positions.

David Denton, the company’s former chief financial officer, left the company effective Nov. 19. The separation was announced in June, and other than the revised departure date, the terms of his departure were unchanged, the company said.

The company on Nov. 6 reported third-quarter adjusted earnings and revenue that both topped analyst forecasts compiled by Capital IQ. For 2018, the company said it expects adjusted earnings of $6.98 to $7.08 a share. Consensus called for earnings of $7.04 per share.

Companies: CVS Health Corporation
Price: 77.65 Price Change: -0.89 Percent Change: -1.13

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