Jan 9 (Reuters) – CVS Health Corp (CVS.N) is exploring an acquisition of major care middle operator Oak Street Health Inc (OSH.N), Bloomberg News reported on Monday citing folks aware of the matter.

Shares of Oak Street Health rose 27% in after-hours buying and selling after closing 4.25% larger at $22.57 on Monday, incomes the Chicago-based firm a market cap of $5.5 billion.

No ultimate choice has been made and discussions may fall via, the report added.

CVS declined to remark whereas Oak Street didn’t instantly reply to a Reuters request.

Oak Street Health runs major care facilities throughout United States for recipients of Medicare, the U.S. authorities insurance coverage program for Individuals aged 65 and older, and has non-public fairness companies resembling Basic Atlantic and Newlight Companions amongst its shareholders.

Drugstore chain proprietor CVS has been increasing its merchandise past managing well being and pharmacy advantages with acquisitions lately, together with its $8 billion buyout of house healthcare service firm Signify Health final 12 months.

CVS had additionally expressed curiosity in increasing into the first care area, and was reportedly among the many bidders to accumulate major care supplier Cano Health earlier than backing out.

Earlier on Monday, CVS mentioned it expects to exceed its full-year 2022 income forecast vary of $309 billion to $314 billion.

Reporting by Mehnaz Yasmin and Bhanvi Satija in Bengaluru; Enhancing by Krishna Chandra Eluri

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