Why Oak Street Health (OSH) Shares Are Jumping Today - CVS Health (NYSE:CVS)

CVS Health Corp CVS is reportedly close to an agreement to buy primary care center operator Oak Street Health Inc OSH for about $10.5 billion, including debt.
If goes through, the deal could be announced as soon as this week.
The Wall Street Journal report added that the companies are discussing a price of about $39 a share.
Bloomberg News reported last month that CVS was exploring a deal for Oak Street Health.
Oak Street Health runs primary care centers across the U.S. for recipients of Medicare, the U.S. government insurance program for Americans aged 65 and older.
Private equity firms General Atlantic and Newlight Partners collectively own roughly 39% of the company, data compiled by Bloomberg shows.
CVS had also expressed interest in expanding into the primary care space and was reportedly among the bidders to acquire primary care provider Cano Health before backing out.
The two acquisitions, including Signify Health for $8 billion, would push CVS, the Aetna health-insurance operation and a pharmacy-benefit manager, far deeper into direct healthcare provision.
CVS Chief Executive Karen Lynch had reportedly signaled that primary and home-based care are key growth areas for the company.
Price Action: OSH shares are up 35.29% at $35.12 during the premarket session on the last check Tuesday.

CVS Health Continues M&A Spree, As It Is Close To $10B Bet For Oak Street Health