The Justice Division needs extra details about CVS Well being’s proposed $8 billion acquisition of Signify Well being earlier than permitting it to proceed, the businesses disclosed Thursday.
CVS introduced final month it plans to purchase Signify Well being, the nation’s largest supplier of dwelling well being threat assessments. The deal would signify the Aetna mum or dad firm’s first foray into the profitable dwelling well being market, an space by which rival Medicare Benefit carriers UnitedHealthcare and Humana have already got a foothold. CVS has additionally indicated that it’s available in the market for a main care supplier.
The Justice Division request extends by 30 days the time CVS Well being and Signify Well being should wait to consummate the deal, though the federal government may waive that requirement. CVS nonetheless expects to shut the transaction within the first half of subsequent 12 months, in keeping with paperwork filed to the Securities and Alternate Fee Thursday. Neither firm instantly responded to interview requests.
Amazon, UnitedHealth Group and Possibility Care Well being additionally sought to amass Signify Well being, which leveraged their bids to greater than double its worth over three months of talks.
The federal authorities has been taking a detailed take a look at a variety of healthcare mergers. The Federal Commerce Fee requested for extra info on UnitedHealth Group’s proposed $5.4 billion acquisition of dwelling well being supplier LHC Group in June and final month requested for extra details about Amazon’s proposed $3.9 billion buy of main care supplier One Medical, for instance.