Walgreens, Humana Consider Deal As Industry Players Hunt For Merger Opportunities In Rapidly Evolving Health Landscape
The companies already have a partnership, but the wide-ranging talks may lead to expanded ventures. It's the latest move in a flurry of health care mergers, as drugstores and other health providers look for ways to diversify, bulk up and insulate themselves against external threats, including from Amazon.
The Wall Street Journal:
Walgreens, Humana Are In Preliminary Talks To Take Stakes In Each Other
Drugstore owner Walgreens Boots Alliance Inc. and health insurer Humana Inc. are in preliminary discussions to take equity stakes in each other, according to people familiar with the matter, as health-industry players scramble for tie-ups that will help them compete in a rapidly evolving environment. The companies, which already have a partnership focused on serving seniors from two Walgreens locations, are having wide-ranging talks that also include the possibility of expanding that venture, the people said. Details of the talks couldn’t be learned and there’s no guarantee there will be any new deal between the companies. (Mattioli, Siconolfi and Cimilluca, 11/20)
Walgreens In Talks With Humana: Report
The move comes on the heels of news that the $69 billion tie-up between Walgreens' archrival, CVS, and Aetna, announced last December, is expected to close after Thanksgiving. Healthcare players from hospitals and insurers to pharmacies have spent the past several years racing to strike deals, as increasing scale seems to be the only way to weather a rapidly changing industry with multiple headwinds. (Sweeney, 11/20)