The daily business briefing: December 4, 2017

CVS seals deal to buy Aetna for $69 billion, U.S. stock futures rise after the Senate GOP tax bill passes, and more

The CVS logo on a store in Washington, D.C.
(Image credit: MANDEL NGAN/AFP/Getty Images)

1. CVS to buy Aetna for $69 billion

Pharmacy chain CVS Health Corp. will buy health insurer Aetna for $69 billion, the companies announced Sunday. The merger is one of the largest in the health-care industry in the past decade, creating a company with drug stores, health-plan management services, and insurance. CVS will pay $207 a share for Aetna, a 29 percent premium on Aetna's share price on Oct. 25, before news of the negotiations broke. CVS also will assume Aetna's debt, bringing the value of the deal to $78 billion. The companies expect $750 million in synergies, but the main benefit is that the deal will help them develop a new way of delivering care, creating what the companies' CEOs said would be "10,000 new front doors for the health-care system" at CVS stores and clinics. The deal needs regulatory approval.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.