Cvs And Omnicare Merger Case Study

820 Words4 Pages
The Merger of CVS Health Corporation and Omnicare Corporation
Introduction
Omnicare, Inc., (NYSE: OCR) and CVS Health Corporation (NYSE: CVS), are two competitive firms in different industries. A press release announces that “CVS Health and Omnicare sign a definitive agreement for CVS Health to acquire Omnicare” ("CVS Health and Omnicare Sign a Definitive Agreement for CVS Health to Acquire Omnicare," 2015). The purpose of this paper is to discuss the merger of CVS and Omnicare. First, the paper describes the principal firms in the merger and the industry in which each operates. Secondly, the paper discusses the incentives to consolidate from the viewpoints of each firm. Thirdly, the writer explains the competitive environment in the industry and how it benefits the firms and society.

Description of The Firms and Extent of Operations of Industries In The Merger
CVS Health Corporation Hoovers notes, “Size matters to CVS Health Corp., (formerly CVS Caremark), CVS is a leading pharmacy benefits manager with nearly 75 million plan members”. Additionally, it is the also the “nation's #2 drugstore chain with more than 9,600 retail and specialty pharmacies under the CVS, Navarro, and Longs Drug banners” ("CVS Health Corporation Company Profile," n.d.). The extent of operations includes operations inside of Target Stores, MinuteClinics, and
…show more content…
According to the information in the Company Overview section, “Omnicare is a leading geriatric pharmaceutical service in the U.S. and provides specialty pharmacy and commercialization services for the biopharmaceutical industry”. ("Omnicare, Inc SWOT Analysis.," 2015, p. 3). The company headquarters are in Cincinnati, Ohio and employs about 12,000 people and 700 part-time people as of December 2014. Additionally, “the company operates through two business segments: long-term care group (LTC) and specialty care group

More about Cvs And Omnicare Merger Case Study

Get Access