Drugstore operator CVS Health Corp said it will acquire Target Corp's U.S. pharmacy and clinics businesses in a $1.9 billion deal that will help it bargain with drug makers for lower prices. CVS, the second-largest U.S. drugstore operator with 7,800 stores, said on Monday it will acquire Target's more than 1,660 pharmacies - which generate about $4.2 billion in sales annually - and nearly 80 clinics."The addition of the Target pharmacy (stores) adds significant purchasing clout for pharmaceuticals," FBR Capital markets analyst Steven Halper wrote in a note.For Target, the deal will help it narrow its focus to products including apparel, items for children and babies, and health and wellness foods - the aim of Chief Executive Brian Cornell, who took the helm in August.
CVS Health Corporation, together with its subsidiaries (CVS Health), is a pharmacy company. Shares of CVS traded higher by 0.38% or $0.39/share to $102.61. In the past year, the shares have traded as low as $74.64 and as high as $105.46. On average, 4326440 shares of CVS exchange hands on a given day and today's volume is recorded at 927582.