DEAL: CVS’ proposed $69 billion acquisition of Aetna

Author: John Crabb | Published: 13 Dec 2017

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.

The 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."

KEY TAKEAWAYS

CVS Pharmacy has announced...