Even Amazon Wants A Piece Of Signify

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What's going on?

Signify Healths 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. Theres no guarantee that an acquisition will go ahead, but the speculation alone is already going down well with investors: UnitedHealths 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 wont be straightforward.
The push for Signify shows how keen companies are to expand into the healthcare industry, which makes sense given that its 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. Thats nothing new for the two frontrunners in this particular deal, mind you: UnitedHealth is already fighting to buy Change Healthcare amid concerns that itll gain access to sensitive information, while Amazons 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. Its 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, its reportedly considering quitting while its ahead.

Originally posted as part of the Finimize daily email.

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