At present, Cigna and Express Scripts have clearances from departments of insurance in 16 states and they stated that they are “working constructively” with regulators in the remaining jurisdictions to obtain clearance for the merger.

When the deal was announced in March it came on the heels of the acquisition by CVS Health, the largest pharmacy health care provider in the country, of Aetna in December 2017 for $69 billion. UnitedHealth owns OptumRx and Anthem announced plans in October 2017 to partner with CVS Health to start its own pharmacy business.


A little over a year earlier, a federal judge denied Anthem’s proposed $52 billion merger with Cigna. In January 2017, the federal court also blocked a $37 billion-merger between Aetna and Humana.

“Employers are growing increasingly frustrated with the cost of prescription drugs and a lack of transparency into the economics of how this works,” Jim Winkler, senior vice president for health at benefits manager and broker Aon, part of Aon Plc, told Reuters at the time.

The total transaction has been valued at $67 billion – Cigna will owe Express Scripts $15 billion in debt. After the deal closes, Cigna shareholders will own approximately 64 percent of the combined company and Express Scripts shareholders will own approximately 36 percent.

The combined company will have Cigna branding, and its headquarters will be in Bloomfield, Connecticut, which is Cigna’s current headquarters. Thirteen directors will be added to the combined company’s board, including four independent members of the Express Scripts board.

Back to HCB News

Business Affairs Homepage