Walmart in first contacts for Humana medical insurance purchase, says WSJ

US retail giant Walmart is in preliminary talks for the purchase of medical insurer Humana, The Wall Street Journal revealed, citing people familiar with the matter.

The firms are discussing several options, said the New York newspaper according to a person’s version, and indicated that it is still uncertain whether they will move towards a merger or other type of association.

For the Journal, an agreement with Humana, whose market value is estimated at 37,000 million dollars, would be a considerable expense for Walmart, which made its largest acquisition in 1999 when it became the Asda Group of the United Kingdom, for 10,800 million dollars .

According to the newspaper, the retail giant, with a market value of 264,000 million dollars, is exploring an acquisition when it faces a reduction in profits and seeks to grow in the market when competition with Amazon intensifies.

Walmart announced last February that it closed its fiscal year 2018 with net profits of 9.862 million dollars, 27.7% less than the previous year.

The Bentonville (Arkansas) multinational entered a net profit per share of $ 3.28 between February 2017 and January, compared to $ 4.38 for its 2017 fiscal year, when it earned $ 13,643 million.

The company’s profits fell despite its turnover slightly increased compared to the last annual period, by 3%, to 500,343 million dollars, compared to the previous 485,873 million.

“The company is of such a scale that the opportunities for future expansion in the United States are limited,” said the managing director of the consulting firm GlobalData Retail, Neil Saunders, quoted by The Wall Street Journal, and considered that a move like this would give him “a completely new terrain in which to expand”.

In February of last year, medical insurance companies Aetna and Humana announced their decision to end their $ 37 billion merger agreement after a federal judge blocked the operation due to competition concerns.

Federal Judge John Bates had blocked the agreement a month earlier by validating the arguments presented by the Department of Justice and considering that the merger “would substantially harm the competition.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

Huawei financial director sued Canada for her arrest

 Toronto (Canada), .- The Huawei Financial Director, Megn Wanzhou, has filed a lawsuit against the Canadian authorities following his arrest on December 1, 2018. The...

The United States asks to return to the UN Human Rights Council after Trump’s break

The United States will request to rejoin the UN Human Rights Council as of 2022, despite the fact that Joe Biden's Administration shares with...

NASA asks for volunteers to simulate the rigors of a year on Mars

NASA is asking for motivated volunteers to participate in year-long missions in a habitat that will simulate the stressors of deep space, beginning in...

Taoray Wang presents a modern and elegant business woman in New York

Chinese firm Taoray Wang today led to New York Fashion Week a modern but sophisticated collection for the Spring Summer of 2018, which highlighted...

Trump’s eldest son agrees to appear before the Senate to talk about Russia

 Washington - Donald Trump Jr., the president's eldest son, has agreed to appear before the Senate Intelligence Committee after reaching an agreement with lawmakers...