As CVS reported that the U.S. Department of Justice will allow it to proceed with its pending acquisition of Aetna, the company also added new board directors and management in anticipation of the merger closing.
Clearance to proceed with the Aetna acquisition follows an agreement reached between CVS and the Department of Justice. As part of the agreement, Aetna entered into an asset purchase agreement with a subsidiary of WellCare Health Plans for the divestiture of Aetna’s standalone Medicare Part D prescription drug plans. DOJ’s clearance, subject to the limited divestiture, moves CVS closer to realizing the substantial synergies and value expected from the Aetna acquisition, the company stated.
The company has added three Aetna directors with long insurance company oversight experience, Edward Ludwig, Fernando Aguirre and Roger Farah, to the CVS board when the drug chain retailer completes the acquisition. The appointments, together with the previously announced addition of Mark Bertolini, Aetna’s current chairman and CEO, will bring the total number of CVS Health board members to 16.
Following the completion of the transaction Eva Boratto, currently CVS evp/controller and chief accounting officer, will become the company’s evp/CFO.
Shawn Guertin, who was Aetna evp/CFO and chief enterprise risk officer and who assumed the position of evp/CFO, CVS, in June has decided to step away for personal and family reasons, the company stated. He will remain with the combined organization until June 2019 to help with integration and financial planning strategy.
“We are delighted to welcome Fernando, Mark, Roger and Ed to the CVS Health board,” said David Dorman, the company’s chairman. “Our shareholders will benefit from the depth of their knowledge of Aetna’s business and their complementary expertise, which will be essential to the combined company as we transform the way health care is delivered in America.”