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BRIEF-CVS Health to acquire Aetna in $69 bln deal
December 3, 2017 / 11:38 PM / 7 days ago

BRIEF-CVS Health to acquire Aetna in $69 bln deal

Dec 3 (Reuters) - Cvs Health Corp:

* CVS HEALTH TO ACQUIRE AETNA; COMBINATION TO PROVIDE CONSUMERS WITH A BETTER EXPERIENCE, REDUCED COSTS AND IMPROVED ACCESS TO HEALTH CARE EXPERTS IN HOMES AND COMMUNITIES ACROSS THE COUNTRY

* ‍AETNA SHAREHOLDERS WILL RECEIVE $145.00 PER SHARE IN CASH AND 0.8378 CVS HEALTH SHARES FOR EACH AETNA SHARE​

* ‍TRANSACTION VALUES AETNA AT APPROXIMATELY $207 PER SHARE OR APPROXIMATELY $69 BILLION​

* ‍INCLUDING ASSUMPTION OF AETNA‘S DEBT, TOTAL VALUE OF TRANSACTION IS $77 BILLION​

* ‍DEAL UNANIMOUSLY APPROVED TODAY BY BOARDS OF DIRECTORS OF EACH COMPANY​

* ‍DEAL EXPECTED TO GENERATE LOW- TO MID-SINGLE DIGIT ACCRETION IN SECOND FULL YEAR AFTER CLOSE OF TRANSACTION​

* ‍DEAL TO DELIVER $750 MILLION IN NEAR-TERM SYNERGIES​

* ‍UPON CLOSING OF TRANSACTION, AETNA SHAREHOLDERS WILL OWN ABOUT 22% OF COMBINED CO; CVS HEALTH SHAREHOLDERS WILL OWN ABOUT 78%​

* ‍EACH OUTSTANDING SHARE OF AETNA COMMON STOCK WILL BE EXCHANGED FOR $145.00 IN CASH AND 0.8378 SHARES OF CVS HEALTH COMMON STOCK​

* ‍INTENDS TO FUND CASH PORTION OF TRANSACTION THROUGH A COMBINATION OF EXISTING CASH ON HAND AND DEBT FINANCING​

* ‍BARCLAYS, GOLDMAN SACHS AND BANK OF AMERICA MERRILL LYNCH ARE PROVIDING $49 BILLION OF FINANCING COMMITMENTS​

* ‍TRANSACTION IS NOT CONTINGENT UPON RECEIPT OF FINANCING​

* ‍UPON DEAL CLOSING , 3 OF AETNA‘S DIRECTORS, INCLUDING AETNA‘S CHAIRMAN AND CEO MARK T. BERTOLINI, WILL BE ADDED TO CVS HEALTH BOARD OF DIRECTORS​

* ‍AETNA WILL OPERATE AS A STAND-ALONE BUSINESS UNIT WITHIN CVS HEALTH ENTERPRISE AND WILL BE LED BY MEMBERS OF THEIR CURRENT MANAGEMENT TEAM​

* ‍BARCLAYS AND GOLDMAN SACHS ARE SERVING AS FINANCIAL ADVISORS TO CVS HEALTH

* CENTERVIEW PARTNERS PROVIDED FINANCIAL ADVICE TO CVS HEALTH BOARD OF DIRECTORS​

* ‍LAZARD AND ALLEN & COMPANY LLC ARE SERVING AS FINANCIAL ADVISORS TO AETNA​ Source text for Eikon: Further company coverage:

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