Cigna CEO David Cordani can be trying to quell concerns which regulators will scrutinize as well as even block his company’s acquisition of pharmacy benefits manager Express Scripts.
Experts have pointed to the Justice Department’s review of AT&T’s acquisition of Time Warner as an example of the scrutiny Cigna as well as Express Scripts could face. Both deals are vertical mergers. Critics argue which although the companies don’t appear to directly compete, combining them could hurt consumers.
“There’s a lot of concern as well as noise relative to the regulatory environment given the pendency of the AT&T deal as well as additional deals within the transaction,” Cordani told CNBC on Thursday. “We’re trying to ensure This particular’s clear which our two companies are truly complementary of each additional as well as don’t have a material overlap.”
In an interview on “Squawk on the Street,” Cordani declined to comment on AT&T as well as Time Warner’s case, nevertheless he said Cigna’s deal can be different.
“We are not dealing with distribution as well as content,” he said. “We are dealing with two complementary companies: one which can be a health services company, as well as one which can be a pharmacy service company. which has very little overlap for any traditional antitrust measures, as well as we believe which as which becomes understood with facts, This particular will not only be approved nevertheless will be approved This particular year.”
Cordani said the company anticipated the Justice Department could review the deal. The agency requested more information through Cigna as well as Express Scripts, which Cordani said was not surprising given the size of the deal.
The request was “essentially consistent” with what they expected, he said, adding which Cigna can be “actively engaged” with the Justice Department.
Last year, the department blocked Anthem’s proposed acquisition of Cigna, one of a handful of health insurance mergers the regulator stopped on antitrust grounds. The department will right now review a fresh round of health-care deals, including drugstore chain as well as pharmacy benefit manager CVS Health’s acquisition of health insurer Aetna.