Health services provider CVS Health (NYSE:CVS) is close to acquiring Oak Street Health (NYSE:OSH) for $10.5 billion, reports the Wall Street Journal.
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The transaction also involves debt and could boost CVS’ presence with primary-care doctors. The WSJ adds that the acquisition price is being pegged at $39 per share and an official announcement could come this week itself.
Earlier, CVS also agreed to acquire Signify Health for $8 billion and the latest move promises to further expand the company’s presence in primary care and home-based care.
Additionally, CVS is also slated to announce its fourth quarter numbers tomorrow before the market opens. Wall Street expects the company to post an EPS of $1.92 on a top line of $76.3 billion for the period.
The chatter of a potential acquisition of OSH has been gaining momentum since November 2022 and surfaced again in January. Oak Street Health’s shares have already jumped about 36% in the pre-market session today.
Overall, Wall Street has a consensus price target of $116.25 on CVS, implying a 36.36% potential upside in the stock. That’s after a 16.4% slide in the company’s share price over the past six months.
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