CVS, Aetna deal reversal would be 'catastrophic' to the industry: Judge Napolitano
A federal judge is weighing in on the nearly $70 billion CVS, Aetna deal, as he wants to hear from witnesses against CVS' acquisition for the insurance giant before deciding their fate. Fox News senior judicial analyst Judge Andrew Napolitano believes it will be approved.
“It does not violate the anti-trust laws, it’s horizontal. It does not impede competition, it enhances competition. It lowers prices,” Judge Napolitano told FOX Business’ Maria Bartiromo on Monday. “It’s the type of merger that a judge should approve in a heartbeat.”
Judge Richard Leon of Washington, D.C. is reviewing a settlement, from last fall, that allowed the merger after the companies had agreed to sell off assets related to Medicare drug coverage. The American Medical Association (AMA) has raised concern about the settlement agreement.
Judge Napolitano said it would be “catastrophic” to the industry if it were to be undone.
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In spite of the review, CVS and Aetna have already closed on the deal, and in February, CVS reported its first quarterly results which included Aetna as part of the company.