CVS spokeswoman Carolyn Caster wrote in an email, “We have no plans to relocate Aetna's operations from Hartford and, in fact, view Hartford as the future location of our center of excellence for the insurance business,” according to Reuters.
The Boston Globe also reported receiving the same language in an email from CVS spokesman Michael DeAngelis.
In June 2017, Aetna had announced its planned move of its corporate headquarters to the Meatpacking district in New York in late 2018. Aetna had signed a contract to rent space at 61 Ninth Ave. in Chelsea from Vornado Realty Trust.
New York State had offered the insurance company $24 million in performance-based tax credits over 10 years. New York City had offered $9.6 million in incentives.
Subsequently, in Dec. 2017, CVS agreed to buy Aetna for $69 million, in what was referred to as a vertical merger because it involved companies from two different industries. This development thrust the Aetna headquarters relocation into question, with an Aetna spokesperson saying: “All Aetna locations will be evaluated as part of the integration planning process.“
Empire State Development never cancelled its incentives, telling GlobeSt.com that since the program was performance-based, it would not be triggered until Aetna tried to meet and maintain job and investment thresholds. Crain's New York Business has reported New York City had cancelled its incentive and a New York City Economic Development Council spokesperson told GlobeSt.com that they were unable to move forward with the proposed assistance package.
However, as reported In Insurance Journal, a day after Hartford Mayor Luke Bronin and CT Gov. Dannel P. Malloy met with CVS officials, during the same week New York City ended its offer, CVS issued the statement committing Aetna's headquarters to Hartford. The acquisition is scheduled to close during the second half of 2018. CVS also stated it would maintain its headquarters in Woonsocket, RI.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
