Walmart in talks to acquire health insurance major Humana
31 March 2018
Walmart Inc, the leading American retail chain, under pressure from the likes of Amazon, is in talks to acquire health insurance major Humana, according to media reports.
Walmart, which operates one of the largest pharmacies in the US, could emerge as a major health and wellness hub, especially for the more than 14 million policyholders of Humana.
Valued at $37.5 billion, Humana would be the biggest acquisition for Walmart. Retail giants in the US are increasingly tying up with health insurers to take on the challenges in both the sectors.
Amazon recently revealed plans to tie up with Berkshire Hathaway Inc and JP Morgan Chase to explore avenues to reduce healthcare costs.
Health insurer Cigna is spending about $54 billion to acquire Express Scripts, while CVS Health Corp is buying insurer Aetna for almost $70 billion.
Humana, with revenues of $53.8 billion last year, has a market value of $37 billion. For Walmart, it would be the most expensive acquisition. The company operates 5,300 physical stores in the US and has also expanded into online to take up the challenge posed by Amazon.
Doug McMillon, the Walmart CEO, has acquired brand such as Jet, an online shopping site, and Bonobos, a men’s clothing and accessories producer.