A previously plannedsale of Aetna's Medicare drug plans to another insurer resolved theantitrust enforcer's concerns, the Justice Departmentsaid.

CVS Health Corp. and Aetna Inc. can go ahead with their about$68 billion deal, the Justice Department said,clearing the way for a merger that will create a health-care giant with a hand in insurance,prescription-drug benefits and drugstoresacross the U.S.

A previously planned sale of Aetna's Medicare drug plans to anotherinsurer resolved the antitrust enforcer's concerns, the JusticeDepartment said in a statement Wednesday announcing theapproval.

Related: How broker consolidation and industry alliances arechanging the industry

“The divestitures required here allow for the creation of anintegrated pharmacy and health benefits company that has thepotential to generate benefits by improving the quality andlowering the costs of the health-care services that Americanconsumers can obtain,” Makan Delrahim, the head of the department'santitrust division, said in the statement.

CVS has said the deal will enable a variety of new medicalservices to be brought into its stores, part of its shift fromcorner pharmacy chain to a hub for health care with thousands oflocations around the country. It could also help steer Aetnacustomers into stores to shop.

Aetna shares were up 1.1 percent to $206.04 at 10:46 a.m. in NewYork. CVS gained 0.9 percent to $80.19.

Aetna last month agreed to sell its Medicare prescription-drugbusiness to WellCare Health Plans Inc. to alleviate concerns that atakeover by CVS would otherwise harm competition among plans thatsell pharmaceutical coverage to seniors.

Under the proposed settlement, Aetna will have to help WellCarerun the business during the transition and give it the opportunityto hire key employees.

The Aetna acquisition is among the most significant health-caremergers of the past decade, combining one of the top U.S. drugstorechains with the third-biggest health insurer. Along with itsthousands of retail pharmacies, CVS manages drug-benefits plans foremployers and insurers.

Consolidation has risen across health care among hospitals,drugmakers and insurers. Health insurer Cigna Corp. last month wonantitrust clearance to buy pharmacy-benefits manager ExpressScripts Holding Co., combining two more major players in the healthservices sector. Both deals followed blocked attempts to merge withrival health insurers

Brush up on the implications of themerger:

• CVS-Aetna wants health insurance to evolve byintervention
• How are employers reacting to the CVS/Aetnamerger?
• CVS acquisition of Aetna will swell retirementassets

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