CVS says FTC clears its buyout of Universal American unit
Woonsocket, R.I. -- CVS Caremark Corp. said Tuesday that federal antitrust regulators cleared its planned acquisition of insurer Universal American Corp.'s Medicare Part D prescription drug business.
CVS and Universal American said the Federal Trade Commission has ended a mandatory review of the $1.25 billion deal. Universal American shareholders and state regulators still need to clear the deal.
The companies announced the transaction Dec. 31, and they expect it to close by the end of the second quarter.
CVS, of Woonsocket, R.I., said it wants to acquire the Medicare Part D business because more Americans will have Medicare prescription drug coverage as the population ages.
Universal American will retain its Medicare Advantage and traditional insurance businesses.