The drugstore chain is paying $39 a share in cash for the Chicago-based company at an equity value of $9.47 billion, according to a statement Wednesday, confirming an earlier Bloomberg News report.
The deal will be funded through available resources and existing financing capacity, CVS said, and is expected to close this year. CVS shares rose 4.8% at 11:42 a.m. in New York, while Oak Street gained 4.9%.
“CVS’s management team now has their work cut out for them, getting two transactions approved by regulators,” said Elizabeth Anderson, an analyst with Evercore ISI.
She sees a roughly 80% chance the deal will be cleared, according to a note to clients.
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