February 07, 2023 11:20 AM<\/span>
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Oak Street Health shares soared 33.2% to $34.56 a share at market open Tuesday following a report that pharmacy giant CVS Health is nearing an acquisition of the primary care provider.<\/p>\n

The Wall Street Journal, citing people familiar with the matter, reported after the markets closed Monday that CVS Health is prepared to pay $10.5 billion in cash and debt to purchase Chicago-based Oak Street Health as soon as this week. Oak Street Health closed at $33.68 per share Tuesday, a 29.7% increase from the prior day. Under the terms of this potential deal, Oak Street Health would be valued at $39 per share, according to the Wall Street Journal.<\/p>\n

CVS Health shares declined 0.1% overnight to $85.15 a share Tuesday and closed at $85.98, or 0.9% higher than Monday. The company has been seeking a primary care asset<\/a>, CEO Karen Lynch said at the J.P. Morgan Healthcare Conference last month. Oak Street Health operates more than 160 primary care clinics for Medicare beneficiaries in 21 states.<\/p>\n

The possible Oak Street Health acquisition comes as retailers such as CVS Health, Walgreens Boots Alliance and Amazon have been making deals<\/a> to enter or expand their presences in the healthcare services market.<\/p>\n

CVS Health is working to close an $8 billion acquisition of Signify Health, a home health and physician enablement technology company, under regulatory scrutiny<\/a>. The company nevertheless expects to finalize the transaction during the first half of the year.<\/p>\n

Walgreens\u2019 VillageMD unit announced an $8.9 billion deal<\/a> to buy Summit Health-CityMD in November. Walgreens also is expected to finalize its acquisition of home care company CareCentrix<\/a> in the third quarter.<\/p>\n

Amazon’s foray into healthcare took a major step forward when the company announced its plans to acquire New York-based primary care provider One Medical for $3.9 billion<\/a> n July.<\/p>\n

Oak Street teamed up with Walmart<\/a> in 2020 to open clinics at the some of the company’s locations.<\/p>\n

CVS Health will release its fourth-quarter and full-year financial results Wednesday.“<\/p>\n

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