Experts Predict FTC Will Be More Lenient Of CVS-Aetna Deal Than Justice Department
But they also say CVS's plan to buy Aetna is "eminently approvable" by either agency because critics would be unable to come up with a convincing theory to show the deal will harm consumers. Meanwhile, a House Democrat is already calling for a probe of the merger.
Reuters:
CVS Likely Wants FTC Antitrust Review, Not Justice Department, Of Aetna Deal
It is uncertain who in the U.S. government will carry out an antitrust review of CVS Health Corp's deal to buy health insurer Aetna Inc, but the drugstore company is likely hoping the potentially more lenient Federal Trade Commission gets the nod, antitrust experts say. The Justice Department's Antitrust Division and Federal Trade Commission share the job of reviewing mergers to make sure they don't hurt consumers, but sometimes it comes down to a coin toss as to who reviews a deal that involves both agencies' areas of expertise. (Bartz, 12/5)
The Hill:
Top House Dem Calls For Probe Into CVS-Aetna Merger
A top House Democrat is calling for a hearing to examine the merger between CVS and Aetna. In a letter to House Energy and Commerce Committee chairman Greg Walden (R-Ore.), the committee’s ranking member Frank Pallone Jr. (D-N.J.) asked for a hearing on the merger as soon as possible. (Weixel, 12/5)
The Wall Street Journal:
CVS Boss Larry Merlo’s Path From Corner Pharmacy To C-Suite
The architect of the year’s biggest and arguably most surprising health-care deal is a former pharmacist from rural Pennsylvania who won over Wall Street with a reboot of CVS Health Corp. Larry Merlo, CVS’s chief executive since 2011, impressed skeptics with his turnaround of Caremark, the pharmacy-benefits manager that CVS bought four years before he took over. (Terlep, 12/5)