CVS Pharmacy’s proposed $69 billion takeover of
health insurer Aetna is expected to be the largest M&A
transaction of 2017. Should the deal fall through CVS has
agreed to pay a termination fee of $2.1 billion to Aetna,
indicating a level of positivity on both sides that the deal
will meet all of the necessary regulatory stipulations and
reach financial close.
transaction itself is straightforward and follows a tried
and tested path, although a breakup fee of this size is
relatively large - even for a deal of this magnitude.
"Some of the largest break fees are often associated with
deals where there are regulatory concerns people feel they can
overcome, because they are willing to take on that risk," said
one source familiar with the deal. "What this shows is a
healthy risk appetite with respect to both parties."
CVS Pharmacy has announced...