CVS to purchase Medicare business

CVS to purchase Medicare business

WOONSOCKET, R.I.

CVS Caremark Corp. said Friday it will pay $1.25 billion to buy Universal American Corp.’s Medicare prescription drug services unit.

CVS said it pursued the deal because with the country’s population aging, a growing percentage of Americans will get their prescription drug coverage from Medicare.

CVS said the deal will more than double the size of its Medicare drug business. Universal American serves about 1.9 million people in the Medicare Part D federally subsidized prescription benefit program for Medicare recipients, while CVS serves 1.2 million.

Woonsocket-based CVS, which operates a chain of drugstores and manages pharmacy benefits, said the deal is expected to close in the second quarter of 2011 and will add to its earnings per share within a year. The agreement is contingent on approval by Universal American shareholders.

Singapore economy grows 14.7 percent

SINGAPORE

Singapore’s economy grew a record 14.7 percent this year, rebounding strongly from last year’s recession as the global recovery boosted exports and tourism.

Gross domestic product expanded 12.5 percent in the fourth quarter from the same period a year earlier, Prime Minister Lee Hsien Loong said in a statement Friday. Lee reiterated the government’s GDP growth forecast for next year of between 4 percent and 6 percent.

Lee warned that the U.S. economy remains weak and Europe faces a debt crisis in several countries while growth momentum in Asia is strong.

“The outlook for the world economy is mixed,” Lee said. “Hopefully, Asia will continue to do well despite the weakness in developed countries.”

Singapore’s three key sectors — manufacturing, finance and tourism — all flourished this year.

Estonia adopts euro as currency

TALLINN, Estonia

The Baltic state of Estonia has become the 17th European Union member to adopt the euro.

Estonia’s decision to change from the Estonian to the joint European currency is the final step in a two decade-long effort to integrate its economy with Europe after it achieved independence in 1991.

Gold, grains are commodity winners

NEW YORK

From gold to grains to oil, commodities finished 2010 at or close to their highest levels in years. Gold closed Friday at $1,421.40 an ounce, up roughly 31 percent for the year after an almost uninterrupted climb since January. Grains and soybeans capped off a rally that started this summer and oil prices ended the year at levels many analysts considered unachievable just six months ago.

VINDICATOR WIRE SERVICES

The jump in commodity prices has been driven by China’s seemingly insatiable demand for raw materials and speculators betting that they could profitably ride the momentum higher. Analysts expect the price increases, and volatility, will continue well in 2011.