Business · Companies · 6 hrs ago
CVS Health plans to split into two companies by 2028
CVS Health plans to split into two public companies by the first half of 2028.
One company would run CVS Pharmacy, including about 9,000 pharmacies, while the other would include Aetna, Caremark and other health businesses.
CVS previously considered a breakup but dropped the idea in 2024, when its retail pharmacy business was under pressure and the company was in a turnaround.
Since then, the pharmacy business has become more consistently profitable, and CVS says its performance and cash flow have improved.
The split could let investors assess each business separately, although CVS shares fell about 12% after the announcement.
Current shareholders are expected to receive shares in both companies once the separation is complete.
The companies will continue operating as they do now until then, and the split is expected in the first half of 2028, subject to approvals and other conditions.
CVS Health plans to split into two publicly traded companies by the first half of 2028.
The health solutions company would include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health.
The retail pharmacy company would operate as CVS Pharmacy and include about 9,000 pharmacies, mail-order services, MinuteClinic and Health100.
CVS said the split followed a strategic review and would give each company a more focused strategy and independent capital structure.
The announcement came after CVS had considered a breakup in 2024 but did not proceed.
- Who
- CVS Health plans to create two publicly traded companies.
- What
- It plans to separate health solutions from retail pharmacy operations. The companies are expected to be established by the first half of 2028.
- When
- The split is expected to be completed in the first half of 2028, subject to approvals and other conditions.
- Where
- The United States; CVS Health is a US-based company.
- Why
- CVS said the companies would have more focused strategies and independent capital structures. Its CEO said the decision was made from a position of strength.
This story does not have two clearly opposing sides.
CVS considered a breakup but ultimately walked away from the idea.
CVS announced plans to split into two publicly traded companies.
CVS expects to complete the separation, subject to approvals and other conditions.
- Target completion
- First half of 2028
- Health solutions company
- Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health
- Retail pharmacy company
- CVS Pharmacy
- Retail pharmacy locations
- About 9,000
- Existing shareholders
- Expected to own shares in both companies
2 sources
What people are saying
What's changed in two years is the fact that we now can look at this business and the assets that are assembled and really determine, without any distress or without anything that we have to do, what is the right strategic decision to make
out of strength
Back then, the idea of retail standing alone was unthinkable
This business is a much different business from the one that's been considered three years ago, five years ago, 10 years ago, where there had been a litany of headwinds that the pharmacy just couldn't overcome.