CVS Health expects the new federal tax law will save the company more than $1 billion this year.
The Woonsocket-based pharmacy chain disclosed the savings in a news release Thursday updating investors about its earnings expectations for 2018 in light of its planned acquisition of health insurer Aetna.
CVS said it expects its federal tax rate will be approximately 27 percent in 2018. The company said it plans to use the additional $1.2 billion for “strategic investments in future areas of growth in its business’’ related to its purchase of Aetna.
CVS said it anticipates its $69-billion bid to acquire Aetna -- which must be approved by federal regulators -- will close during the second half of 2018.