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Justice Department requests more information on CVS-Aetna merger

Larry Merlo, CEO of CVS and Mark Bertolini, CEO of AETNA appear on Squawk Box on Dec. 4th, 2017.

Cameron Costa | CNBC

Larry Merlo, CEO of CVS and Mark Bertolini, CEO of AETNA seem on Squawk Box on Dec. 4th, 2017.

Trump administration regulators will not be able to log off on CVS Health’s $69 billion deal to accumulate Aetna. The Department of Justice requested the companies to offer more information on Thursday, simply because the 30 day ready interval beneath Hart Scott Rodino Act expired.

“CVS Health and Aetna have been cooperating with the DOJ staff since shortly after the announcement of the Merger Agreement and are continuing to cooperate with the DOJ staff in its review of the transactions contemplated by the Merger Agreement,” the companies stated in an SEC regulatory submitting.

CVS goals to merge with Aetna to create an built-in health system combines pharmacy and health advantages, and delivers preventive care providers by means of the pharmacy chain’s retail clinics. It would mark a serious effort at vertical consolidation in health care.

The Obama administration opposed main horizontal mergers by health insurers during the last couple of years, blocking Aetna’s proposed deal to accumulate rival Humana and Anthem’s bid to purchase Cigna.

So far, the Trump administration has proven it isn’t receptive to vertical integration offers. Last fall, the justice division moved to dam AT&T‘s bid to accumulate Time Warner.That path in that case is about to start out on March 19th.

The DOJ’s second discover request extends the ready interval on the CVS-Aetna deal for an additional 30 days. In the meantime, the companies have scheduled shareholder votes to approve the deal for March 20th.

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