Even Amazon Wants A Piece Of Signify

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What's going on?

Signify Health’s stock jumped 40% on Monday as a host of buyers think about buying the home-health provider.

What does this mean?

Reports emerged at the start of the month that drugstore giant CVS was interested in buying Signify, which provided in-home healthcare evaluations to around 2 million patients last year. And now it turns out that a handful of other hopefuls have entered the fray, including insurer UnitedHealth, fellow healthcare provider Option Care, and – fresh off its deal to buy One Medical last month – Amazon. There’s no guarantee that an acquisition will go ahead, but the speculation alone is already going down well with investors: UnitedHealth’s reported bid of over $30 a share is almost twice what the company was trading at just a month ago.

Why should I care?

For markets: This won’t be straightforward.
The push for Signify shows how keen companies are to expand into the healthcare industry, which makes sense given that it’s something Americans avoid cutting back on even in a downturn. But a deal in the sector is also bound to catch the attention of regulators, which will be wary that reduced competition could work against consumers. That’s nothing new for the two frontrunners in this particular deal, mind you: UnitedHealth is already fighting to buy Change Healthcare amid concerns that it’ll gain access to sensitive information, while Amazon’s regulatory battles are too many to count.

Zooming out: Amazon goes off.
Speaking of Amazon, the ecommerce giant is thinking twice about its physical stores in the UK. It’s opened 18 checkout-free Amazon Fresh stores across the country, and had plans to open hundreds more. But with the tough economic backdrop having led to disappointing sales, it’s reportedly considering quitting while it’s ahead.

Originally posted as part of the Finimize daily email.

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