Shareholders of insurance companies Centene and WellCare have approved the two companies’ planned $17.3 billion combination.
More than 99 percent of voting shareholders at both companies voted in favor of the deal, in an overwhelming show of support for a merger that was rumored to be opposed by certain activist investors.
The deal, which was initially announced in March, would create the fourth largest insurer in the country with an estimated 22.3 million members across all 50 states. The combined company would be a leader within the government payer segment, where it would have around 12 million Medicaid and 5 million Medicare members.
“With the addition of WellCare, we are creating a combined company that is better able to serve members and help them achieve better health outcomes,” Centene CEO Michael F. Neidorff said in a statement.
“Centene and WellCare will continue to move forward with federal and regulatory approvals with a focus on improving quality for recipients, fair compensation for providers and savings for states. We thank our stockholders for their continued support and look forward to working with WellCare to complete this transaction.”
The companies have stated they expect the deal to close by the first half of 2020, but may face antitrust scrutiny from the Department of Justice which has requested more information from the companies on the merger plans.
Centene and Wellcare characterized the DOJ action as “not unexpected given the size of the transaction.”
While the shareholder vote is a major milestone, the deal still needs to get the approval of an additional 22 state regulators. According to the companies, the merger has received conditional approvals in Alabama, Arkansas, Kentucky and Missouri.
Getting regulators’ blessing in Missouri required divestiture of certain Medicaid assets, which may also be a likely result in Nebraska.
Photo: Kritchanut, Getty Images
