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CVS Working To Acquire Brazilian Drug Store Chain DPSP - $4.5 Billion Offered, Refused, Still Working

Posted May 23 2014 9:22pm

Well we have Walgreens trying to figure out if it’s going to move to the UK so now we have CVS working to buy a large non US Drug Store chain in Brazil.  In 2012 we had United buy up the biggest HMO in Brazil and the CEO and founder of that Brazilian is the largest single shareholder now sitting on United's board. 

United Healthcare Negotiated to Buy 90 Percent of the Largest Managed Care Provider in Brazil, Where Insurers Can Own Hospitals and Physician’s Practices

Well you know CVS has yet to get rid of those cigarettes and needs to replace some revenue streams and is this part of that plan?  I though too they would increase the amount of data they sell to make up the difference as they have to be right out there with Walgreens making $1-2 billion a year just selling data.  A couple years ago we had this activity with a PE firm who bought a Brazilian Health Insurance company.  image

Private Equity Group Carlyle Buys Australian Hospital Company and Brazilian Health Insurance Company

They are going to probably hate us in time in Brazil as they see their middle class shrink like what’s happening here.  The economy there right now is not good either and the World Cup won’t be the answer there either and there have been protests there as well.  The country’s credit rating is one notch above junk. 

So here comes CVS ready to move in and buy up some drug store real estate.  It will be interesting to watch as I don’t think the bidding is done yet from what I am reading.  BD 


SÃO PAULO— CVS Caremark Corp. CVS -0.12% is in talks to acquire Brazilian drugstore chain Drogarias Pacheco São Paulo, or DPSP, as part of the company's plan to expand in Latin America's largest nation.

The U.S. drugstore chain offered 4.5 billion Brazilian reais ($2 billion) to acquire control of DPSP, but the company rejected the offer, local news magazine Exame reported.

CVS is evaluating making another proposal for DPSP, which set a minimum price for the company at 5.9 billion reais, according to local newspaper Valor Economico. Neither report said where it got the information. CVS and DPSP representatives weren't immediately available for comment.

DPSP is controlled by the Barata family and 12 other shareholders.

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