Centene buys smaller rival WellCare
The acquisition will give Centene access to WellCare's Medicare business and will help it expand its health plans to the Medicaid market. The deal will help reduce Centene's dependence on Obamacare's healthcare exchanges and compete better against such rivals as UnitedHealth Group Inc and CVS Health Corp.
The health insurer is in advanced talks with WellCare over a merger, WellCare shares rose 23 percent in premarket trading, while Centene stocks were down 4.5%
Stocks impacted: Centene Corp (CNC), WellCare Health Plans Inc. (WCG)
U.S. health insurer Centene Corp will buy smaller rival, managed-care provider WellCare Health Plans Inc, for $15.27 billion (11.57 billion pounds) in a cash-and-stock deal. According to the companies, the deal, including debt, was valued at $17.3 billion. Now, Centene Corporation employs 47,300 people. After yesterday’s trading, the company’s market cap has fallen to $22.66 billion.
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