The Justice Department, which recently stood by CVS Health’s $69 billion buyout of Hartford health insurer Aetna, has asked a federal judge to approve the deal so the companies can fully integrate.
U.S. District Judge Richard Leon in Washington D.C. has slammed the companies and the U.S. Justice Department for announcing the industry-shifting merger prior to his court’s approval on a deal the government struck with Aetna, requiring it to sell off its Medicare Part D prescription drug plan to a subsidiary of WellCare Health Plans Inc.
After Leon claimed he was “kept in the dark” regarding the takeover, Rhode Island-based CVS attempted to reassure the judge about the benefits of its combination with Aetna. The pharmacy giant had promised Aetna would maintain control over pricing for products and services for its insurance customers, in addition to holding off on sharing competitively sensitive information.
Companies rarely wait for federal court backing before announced their deals, which CVS did in November, but Leon’s approval is still needed for CVS and Aetna to complete its consummation.
Under the Justice Department’s request, Leon may decide to immediately greenlight the deal or schedule further hearings allowing for additional testimony on the antitrust agreement, according to a Reuters report.
