CVS' $10.6B deal for Oak Street Health to close; FTC waiting period expires

CVS Health expects to close its $10.6 billion acquisition of Oak Street Health by the end of June, the company said in a March 30 securities filing.

The deal for Oak Street Health, which operates a chain of more than 130 clinics aimed at Medicare Advantage patients, would greatly expand CVS' value-based care ambitions and capabilities of caring for older Americans. CVS closed its $8 billion purchase of home health company Signify Health on March 29.

The all-cash acquisition is moving forward after the requisite waiting period from when the companies filed documents with the Federal Trade Commission and Department of Justice expired March 27, according to a March 30 proxy statement from Oak Street Health. U.S. Sen. Elizabeth Warren, D-Mass., recently asked the FTC to closely investigate the merger.

Oak Street Health also canceled its annual shareholders meeting scheduled for April 27 due to the expected completion of the deal.

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