Tuesday, June 25, 2024

Walmart considering buying majority stake in ChenMed – report

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Walmart (NYSE:WMT) is evaluating purchasing a majority stake in primary clinic operator ChenMed.

The retail giant and the operator of primary care clinics for seniors are in discussions for a transaction that would value ChenMed at several billion dollars, according to a Bloomberg report late Friday, which cited people familiar with the matter. Terms haven’t been agreed to, and it’s possible that a different buyer could emerge.

A potential deal comes after several other recent deals in the primary care space, including CVS Health’s (CVS) purchase of Oak Street Health for $10.6 billion in early May. Amazon (AMZN) also acquired One Medical for $3.5 billion in February.

VillageMD, majority owned by drug store chain Walgreens Boots Alliance (WBA), acquired health care provider Summit Health CityMD in January in a deal valued at approximately $8.9 billion.

ChenMed is an operator of primary care clinics focused on Medicare-eligible seniors. The company operates more than 125 senior medical centers in 15 states, according to its website.

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