Aetna’s NYC Headquarters Unsure As CVS Evaluates Websites – Hartford Courant

As a subsidiary of CVS Health Corp., Aetna Inc. might should scuttle its plans to maneuver to a brand new $85 million headquarters in New York Metropolis.

In a submitting by Aetna with the U.S. Securities and Exchange Commission Tuesday and in an e mail from a CVS spokeswoman, the businesses stated all of Aetna’s workplaces shall be reviewed as a part of the the Rhode Island firm’s $69 billion buy of the Hartford insurer. CVS wouldn’t decide to protecting the Manhattan website when requested Tuesday about Aetna’s plans to relocate.

“All actual property places shall be evaluated by CVS Well being through the integration planning course of,” stated Aetna and CVS spokeswoman Carolyn Castel. She cautioned, two days after the CVS-Aetna deal was introduced, that it’s too early to offer detailed plans.

A spokesman for Aetna didn’t reply to a request for remark.

Regardless of overtures from the state and metropolis, Aetna introduced in June it might finish its 164-year run in Connecticut by shifting to New York subsequent yr. On Sunday, Aetna and CVS introduced the mega-deal that’s anticipated to shut subsequent yr pending approval by federal and state regulators.

Aetna took a parting shot at Connecticut because it introduced its departure, warning that the state’s financial progress and monetary stability will decide its presence in Connecticut sooner or later. The transfer struck a blow to each Hartford and the state at a time when Connecticut is struggling to revive a sputtering financial system.

Aetna officers have advised New York officers it deliberate to spend almost $85 million to renovate, furnish and equip about 145,741 sq. ft of workplace area it’s leasing.

Aetna CEO Mark Bertolini stated in June that Aetna’s transfer to New York was motivated by a necessity for staff within the so-called information financial system: software program builders, knowledge specialists and others who adapt digital know-how to Aetna’s work because it pivots to a well being care firm.

That may tie in to what Aetna brings to the CVS deal: creating and managing an incredible set of knowledge that would result in extra personalised drugs and remedy of sufferers.

The brand new headquarters at 61 Ninth Ave., close to Google’s new campus and Apple’s flagship retailer, was anticipated to open in October 2018.

Business analysts have usually not commented on the way forward for Aetna’s headquarters as a result of the difficulty is parochial and has minimal influence on buyers.

Nevertheless, Jason McGorman, a well being care analyst at Bloomberg, stated in an interview Monday that CVS should determine if Aetna’s transfer to New York generates “significant financial savings” with tax incentives negotiated by Aetna and New York.

“Now you type of marvel if it’s going to occur,” he stated.

Jim Watson, the spokesman for the Connecticut Division of Financial and Group Improvement, stated officers won’t touch upon “particular discussions or interactions with particular person corporations.”

Hartford Mayor Luke Bronin didn’t reply to a request for remark.

New York state financial improvement officers didn’t reply to a query about whether or not Aetna and the state have mentioned the way forward for the Manhattan headquarters. Just like Connecticut financial improvement coverage, New York requires corporations to satisfy job and funding necessities to earn state incentives, stated the company, Empire State Improvement.

Metropolis estimates of the price to New York in tax abatements and exemptions can be $6.2 million. The state is offering $24 million in tax credit associated to Aetna’s capital spending and creation of 250 administration and different jobs.

Aetna had deliberate to maneuver greater than 200 executives and others, with about 6,000 staff remaining in Connecticut.

In saying its exit from Connecticut, Aetna brushed apart pleas from Gov. Dannel P. Malloy to remain. Lower than 18 months earlier, Common Electrical Co. introduced its departure for Boston after 42 years in Fairfield.

GE’s plans for a brand new headquarters in Boston have been pared because the conglomerate struggles to chop prices.

Source link