Summary
Cigna/Express Scripts deal gets approved by DOJ.
CVS/Aetna faces regulatory concerns.
Linde/Praxair is advancing the asset sale.
In this post, you will find a few updates on currently followed deals.
Little by little, I will try to expand to other special situations covering deals that I find particularly interesting. The goal is still to make these series into daily posts.
Updates On Healthcare Mergers
As expected, Cigna (CI) - Express Scripts (ESRX) deal has received DOJ green light last week, which was a major approval required and certainly a huge hurdle off their backs. Cigna has also previously announcedthat it will update shareholders on the upcoming meetings over the next several weeks. So far, 16 regulatory approvals have been received, but 13 are still pending. Companies expect to close the deal by the end of 2018. However, surprisingly, the spread has widened to around 7% from 4% since the last time we’ve covered this deal. Besides that, according to rumors, CVS-Aetna deal was nearing DOJ approval at the same time as Cigna’s, although it is apparently taking more time due to divestments, which are expected to be required in Medicare Part D and even a potential buyer is named (WellCare (NYSE:WCG)).
