FTC OKs Anthem-WellPoint Merger

Anthem Inc. on Friday won government antitrust approval to buy Thousand Oaks-based WellPoint Health Networks Inc. for $16.4 billion and become the largest U.S. health insurer.

The Federal Trade Commission closed its antitrust investigation of the combination. The companies have not scheduled shareholder votes to approve the transaction.

The takeover will give Anthem almost 1 in 3 members of Blue Cross plans, which cover about one-third of all Americans. Anthem, based in Indianapolis, owns Blue Cross and Blue Shield health plans in nine U.S. states. The company, which is competing with UnitedHealth Group Inc. to sign up big employers, would have 26 million members after acquiring WellPoint.

The $16.4-billion price tag includes debt.

Regulatory approval “is another significant milestone in the completion of our transaction,” which is still being reviewed by state regulators, said Anthem spokesman Ed West. “We still expect to close by midyear. Everything seems to be on track.”

Shares of WellPoint rose $1.05 to $108.77 on the New York Stock Exchange, where Anthem shares rose 58 cents to $85.95.

Anthem, which agreed to buy WellPoint in October, has health plans in Colorado, Connecticut, Indiana, Kentucky, Maine, Nevada, New Hampshire, Ohio and Virginia. The two companies had battled to acquire other Blue Cross insurers across the U.S.

Anthem Chairman Larry Glasscock said last year that the company would consider further acquisitions while trying to increase market share in states where the combined company would do business.