WCG - Centene and WellCare Merger Approved by Regulators
Centene (NYSE: CNC) and WellCare Health Plans (NYSE: WCG) are on the brink of fusing together. In a joint press release issued after market hours Tuesday, the two companies said that they have "satisfied all regulatory requirements under the merger agreement to complete the pending transaction." This includes a review of the transaction by the Department of Justice.
The approval has been quite some time in coming, as is fairly typical in the healthcare sector. Last March, it was announced that WellCare agreed to be acquired by peer health insurance provider Centene in a deal valued at $17.3 billion at the time. That price is to be paid in a blend of cash and Centene stock.
The regulatory concern was warranted, as the absorption of Centene will make WellCare the largest insurance provider for public healthcare programs such as Medicare and Medicaid.