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US health insurer Cigna has announced plans to buy pharmacy benefits manager Express Scripts in a $67 billion deal, including debt, marking the latest tie-up in the sector.
Connecticut-based Cigna said the cash-and-stock deal would value Express Script’s equity at roughly $54 billion, and include the assumption of $15bn in the company’s debt.
The merger will “create an expanded portfolio of health services, delivering greater consumer choice, closer alignment between the customer and healthcare provider, and more personalised value,” said David Cordani, Cigna’s chief executive.
After the deal is closed, Cigna shareholders will own about 64 per cent of the combined company.
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News of the deal sent Express Scripts shares rallying 18.2 per cent in pre-market trading in New York. Cigna fell 5 per cent.
Thursday’s announcement is the latest consolidation in the industry. CVS Health, the pharmacy chain, late last year sealed a $69 billion deal to buy Aetna, the insurer. Last month, grocery company Albertsons struck an agreement to buy drugstore chain Rite Aid to create a group with $83bn in annual sales.
– Copyright The Financial Times Limited 2018
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