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CVS, Aetna spike on report that they're very close to finalizing a deal

Nov 30, 2017, 21:32 IST

CVS and Aetna shares jumped in trading on Thursday after Dow Jones reported that both companies were nearing a deal.

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The retail pharmacy giant was reported in late October to be in talks to buy the health-insurance giant in a deal worth about $66 billion.

According to the report, CVS is nearing a majority cash purchase of Aetna of between $200 and $205 a share.

CVS shares gained as much as 5%, while Aetna rose 2%.

Aetna previously agreed to buy rival insurer Humana for $34 billion, but that deal was blocked by the Department of Justice. A judge ruled in favor of the DOJ in January, saying that the combination of the two companies would have been anticompetitive.

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CVS's move into healthcare would be a step towards fending off competition from Amazon, which has been speculated to be interested in the industry.

More to come ...

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