Malloy: CVS to keep Aetna's HQs in Hartford

  • Malloy: CVS to keep Aetna's HQs in Hartford

Malloy: CVS to keep Aetna's HQs in Hartford

CVS Health says they have no plans to relocate Aetna out of Hartford and view the city as the future location for the insurance business.

Palombi said that he and other CVS corporate executives met Thursday with Hartford Mayor Luke Bronin and other CT officials to discuss his company's intentions.

CVS Health will also continue to be headquartered in Rhode Island.

CVS' chief executive Larry Merlo met with Hartford Mayor Luke Bronin at city hall Thursday.

The announcement comes only days after it was reported that NY city officials pulled the plug on a $9.6 million incentive package to Aetna, which had pledged to move its headquarters from Hartford to Manhattan.

Initially confirmed by Gov. Dannel P. Malloy, a CVS Health spokesman also spoke to the prospect of keeping Aetna employees in Hartford.

Malloy took Friday's announcement by CVS as confirmation that CT is a "tremendous place to do business" with talented workers and a good quality of life.

Aetna has inked a lease to occupy a new building in lower Manhattan, committing to move 250 headquarters workers to the site from Hartford.

Crain's New York Business reported earlier this week that the incentive package used to lure Aetna to New York was falling apart.

That was due in part to uncertainties about Aetna's plans after CVS Health in December announced its plan to acquire the insurance company for $69 billion. At the time, Aetna said it planned to move approximately 250 employees to Manhattan, but things changed toward the end of previous year. "I will continue to urge close scrutiny from DOJ and other enforcement bodies to ensure the proposed Aetna-CVS merger provides consumers with greater choices and competition and spurs economic development in our state", Blumenthal said in a statement on Friday.

Aetna traces its roots in Hartford to the 1800s.

David Cadden, a business professor at Quinnipiac University, said the announcement gives CT an opportunity to change its image as a business unfriendly environment. Unfortunately, the repositioning of a corporate headquarters is a zero-sum game where one location's gain is another location's loss.