WS Investor
04 Nov 2026, 16:34
CVS Health Plans Tax-Free Split Into Two Public Companies by 2028
CVS Health (NYSE: CVS) plans to separate into two independent publicly traded companies, splitting its healthcare solutions operations from its retail pharmacy business. The transaction is expected to be completed in the first half of 2028.
One company, which will retain the CVS Health name, will include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. The second, CVS Pharmacy, will include roughly 9,000 retail pharmacies, mail pharmacy, MinuteClinic and the Health100 technology business.
CVS said the separation should give each business a more focused strategy, independent capital structure and greater flexibility to invest and allocate capital. Both companies are expected to maintain investment-grade ratings and generate strong free cash flow.
The transaction is intended to be tax-free to CVS Health and its shareholders, who are expected to own shares in both companies following the separation.
CVS Health (NYSE: CVS) plans to separate into two independent publicly traded companies, splitting its healthcare solutions operations from its retail pharmacy business. The transaction is expected to be completed in the first half of 2028.
One company, which will retain the CVS Health name, will include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. The second, CVS Pharmacy, will include roughly 9,000 retail pharmacies, mail pharmacy, MinuteClinic and the Health100 technology business.
CVS said the separation should give each business a more focused strategy, independent capital structure and greater flexibility to invest and allocate capital. Both companies are expected to maintain investment-grade ratings and generate strong free cash flow.
The transaction is intended to be tax-free to CVS Health and its shareholders, who are expected to own shares in both companies following the separation.
