The Justice Department wants more information about CVS Health’s proposed $8 billion acquisition of Signify Health before allowing it to proceed, the companies revealed Thursday.
CVS announced last month that it plans to buy Signify Health, the nation’s largest provider of home health risk assessment services. The deal will represent parent Aetna’s first foray into the lucrative home health market, an area where Medicare Advantage carriers UnitedHealthcare and Humana already have a foothold. CVS has also shown that it is on the market to a primary care provider.
The Justice Department’s request to extend the time CVS Health and Signify Health must wait to finalize the agreement by 30 days, although the government could waive that request. CVS is still expected to close trading in the first half of next year, according to documents filed with the Securities and Exchange Commission on Thursday. Neither company immediately responded to interview requests.
Amazon, UnitedHealth Group and Option Care Health also seek to acquire Signify Health, take advantage of their bids more than doubled its value in three months of negotiations.
The federal government has been closely scrutinizing a number of healthcare mergers. The Federal Trade Commission has requested more information about UnitedHealth Group proposes to buy back $5.4 billion by home health care provider LHC Group in June and last month requested an additional iinformation on Amazon’s $3.9 billion purchase proposal of a One Medical primary care provider, for example.