Vivian D. Labbe
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Vivian D. Labbe in Mergers & Acquisitions,

A CVS-Aetna Merger Would Be Revolutionary

Health care investors were blindsided on Thursday afternoon when Dow Jones reported that CVS Health Corp CVS is exploring a $66 billion bid for Aetna Inc AET. As expected, Wall Street analysts have a lot to say about the potential deal.

In a new note on Friday, Citigroup analyst Alvin Concepcion said a marriage between CVS and Aetna makes sense in principle as the health care industry prepares for a major new competitor in Amazon.com, Inc. AMZN.

“In sum, we see this potential deal as both evolutionary and revolutionary given the dynamic healthcare environment and push toward consumerism coupled with a challenged retail backdrop and the need to combat a looming AMZN threat,” Concepcion said.

A $66 billion deal would be a tough pill for the $73 billion CVS to swallow. Read more


Some downside still holds. 

$CVS, CVS HEALTH CORPORATION / D



The upside looks limited.

$AET, AETNA Inc / D