The shares of health and retail giant, CVS Health (CVS), fell on Wednesday after the announcement of the purchase of WellCare by Centene, an operation considered by investors as a potential impact on revenues from Aetna's health insurance business from CVS Health.
Centene (CNC) and WellCare (WCG) announced Wednesday the merger of their forces in connection with a deal valued at about $ 17.3 billion. The deal gives the combined company 22 million members across the United States and a combined revenue of $ 97 billion in 2019 for 2019 – and a larger scale to compete with Aetna's health insurance business. CVS Health.
At the end of November, CVS officially signed its $ 69 billion mega merger with health giant Aetna, which combined CVS's pharmacy with Aetna's insurance business.
The announcement of Centene and WellCare could potentially affect CVS 'position, as the combined companies will directly complete similar offers.
Certainly, CVS is considering other opportunities in the health sector.
"The real growth opportunity in this space is in assisted and independent living spaces," said CEO Larry J. Merlo in an interview with Jim Cramer of TheStreet.com on CNBC earlier this week. "We estimate that the company is stabilized and that it will continue to grow."
CVS shares fell nearly 4%, or $ 2.18, to $ 53.21 during trading on the New York Stock Exchange.
CVS is a participation in Action Alerts PLUS member club Jim Cramer. Do you want to be alerted before Jim Cramer buys or sells CVS? Learn more now
How much money will I need to retire?
Want to know more about retirement planning with some of the best experts in the country? Join Robert "M. Retirement" from TheStreet in New York on April 6th at the Symposium on Retirement Strategies. For a limited time, $ 99 tickets are available for this one – day event. Check the agenda, discover the speakers and register here.