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Source: Susan Montgomery / Shutterstock.comOak Street Health (NYSE:OSH) stock is a hot topic among traders on Tuesday following reports that CVS (NYSE:CVS) intends to acquire the company.
According to these recent reports, CVS is willing to pay $10 billion to bring Oak Street Health into its fold. The reports claim the price could rise above that as it covers both the acquisition of the company and its current debt.
While these are still only reports without an official statement, it’s exciting investors in OSH stock. As of this writing, more than 11 million shares of the stock have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 1.6 million shares.
Why Does CVS Want OSH?
CVS has recently been looking to expand beyond its business as a retailer and pharmacy company. This has it stretching its business into the healthcare market. It’s already done this with its recent purchase of Signify Health (NYSE:SGFY).
CVS’s interest in the healthcare space comes as retail sales have slowed. If the reports are true and it acquires Oak Street Health, it could benefit both companies. OSH stock is still new to the public market having made its debut back in 2020.
Since then, OSH shares have fallen 25.7% compared to their starting price of $39 each. Selling to CVS could help it turn around its business while wiping out its debt. For the record, shares of OSH stock are up 28.4% as of Tuesday afternoon following the CVS acquisition reports.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage traders need for Tuesday! That includes why stocks are down today, as well as what’s happening with Bed Bath & Beyond (NASDAQ:BBBY) and Sidus Space (NASDAQ:SIDU) shares. You can learn more at the links below!
More Tuesday Stock Market News
- Why Are Stocks Down Today?
- Bed Bath & Beyond Layoffs 2023: What to Know as BBBY Preps More Job Cuts
- Why Is Sidus Space (SIDU) Stock Up 20% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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