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Source Short: CVS Aetna Merger Not a Done Deal

In November 2018, The Source reported that CVS was finalizing its merger with Aetna after getting approval from the Justice Department. In the past two weeks, however, statements by Judge Richard Leon, a judge from the US District Court for the District of Columbia, have made that merger less certain. The approval from the Justice Department is conditional until approved by the courts. As a result, Judge Leon could rule to prevent the merger, but because the transaction already closed,[1] some legal experts have called untangling the companies akin to unscrambling an egg.[2],[3] Judge Leon requested briefs from both sides and scheduled a hearing for December 18th.  The Source will continue to follow these developments and report on any conditions Judge Leon requires to approve the merger, including any additional divestitures.

 

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[1]https://cvshealth.com/newsroom/press-releases/cvs-health-completes-acquisition-of-aetna-marking-the-start-of-transforming-the-consumer-health-experience

[2]https://www.law360.com/articles/1107871/meet-the-rigorous-judge-overseeing-the-cvs-aetna-merger

[3]https://www.axios.com/problem-facing-cvs-health-aetna-merger-d8ba2878-f243-4b94-9978-65a8aadf90cd.html

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