Two potential major health care mergers could be in trouble.
According to CNNMoney, drug store chain CVS’s $69 billion attempt to absorb insurance provider Aetna is being challenged by the California Insurance Commissioner, who is asking the Justice Department to block the deal. The Commissioner argues that the merger would cause prices to increase while limiting competition. Shareholders of both companies have already given the deal the green light.
Additionally, Cigna wants to take over pharmacy benefits manager Express Scripts to the tune of $67 billion. However, its newest investor, business icon Carl Icahn, is said to be convincing the company’s shareholders to vote against the deal on August 24, because he believes the company is paying too much.
A merger between Aetna and Humana, and another between Cigna and Anthem, were both blocked by federal judges in 2017 due to antitrust concerns.
Meanwhile, Amazon is still in the process of creating a health care company in partnership with JPMorgan Chase and Berkshire Hathaway.