NEW YORK – CVS Health Corp. is nearing an agreement to acquire health insurer Aetna Inc. for more than $65 billion, according to a person familiar with the negotiations, in a deal that could reshape the pharmacy and health insurance industries.
An announcement could come as soon as Monday, said the person, who asked not to be identified because the talks are private. CVS is likely to agree to pay at least $200 a share for Aetna, with more than 30 percent paid for with cash, according to the person. Talks could still be delayed or fall apart.
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Timing of the potential deal was first reported by The Wall Street Journal on Thursday. Aetna and CVS declined to comment.
A deal between Aetna and CVS could upend the health insurance, pharmacy and drug benefit sectors. Many of the biggest players in those industries are also looking over their shoulders at Amazon.com Inc., which has been reported to be exploring various health-care businesses.
It would also come less than a year after two major health insurance deals – between Anthem Inc. and Cigna Corp., and Aetna and Humana Inc., fell apart amid antitrust challenges.
Aetna’s shares are still trading well below the reported deal price, a sign that investors believe the deal may not close. They were up 1.1 percent to $181.50 at 12:11 p.m. in New York. CVS was up 2.8 percent to $75.45.
A deal between the two companies could heighten speculation about the next moves of other players, including independent pharmacy chains and standalone pharmacy benefit management companies.
On Thursday, Express Scripts Holding Co.’s chief executive said he’s open to a deal with a health insurer or partnering with Amazon.com Inc. CEO Tim Wentworth’s pharmacy benefits company has been battered by departing clients and the vague specter of Amazon’s entry into the drug business.
If a major insurer was interested in a deal, “I would be open to it,” Wentworth said on the sidelines of a conference in New York sponsored by Forbes. “We don’t need to sell to be very successful in the future, but we are always open to others who may all of sudden conclude they want what we have.”
Wentworth said the company isn’t actively seeking a large deal or sale. Express Scripts shares were up 1.3 percent to $63.69.
Robert Langreth is a reporter for Bloomberg News.
