Cigna and Express Scripts have racked up $201m in legal fees over pending merger

Cigna and Express Scripts have racked up a massive legal tab in the fight to successfully finalize their mega-merger, worrying consumers that the fees will be included in their healthcare costs.

September 5, 2018

In March, Cigna announced it would buy the world’s largest pharmacy benefits manager, Express Scripts, for $52B in cash and stock.

According to new company figures, as of yesterday, Cigna and Express Scripts have collectively spent $201m on lawyers and bankers tied to the pending merger (valued at $67B, including debt).

It may not even happen

Cigna has had a doozy of a time with takeovers, as it looks to pre-emptively compete with companies like Amazon, which has toyed with the healthcare biz in the past.

Last year, antitrust regulators blocked Cigna’s attempt to buy Anthem for $48B, and in August, Express’ stock fell 6% after Carl Icahn bought 5% of the company and expressed interest in blocking Cigna’s takeover.

And they’re not the only ones who have fallen victim to merger fees 

After AT&T won its long, drawn out fight with the DoJ to take over Time Warner Inc. for $85B, victory too came with massive expenses.

Last year, the WSJ reported the service provider spent $1.1B on debt interest and fees linked to the proposed merger, plus another $214m on added integration costs, totaling $279m spent on the merger in 2017 — and that’s not even counting the cost of lawyer fees.

The bottom line is, the longer these transactions take, the less of a win it becomes… for everyone. 

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