AmerisourceBergen Corp. (NYSE: ABC) is having an overwhelmingly strong day in the market today, and for good reason. According to various reports, the company has been approached with a takeover offer. This offer is proving to be a source of excitement for investors, leading to gains in the value of the stock. Today, we’ll talk about the offer, what we’re seeing from the stock, and what we’ll be watching for with regard to ABC ahead.
ABC Gains Big On Takeover Offer
As mentioned above, AmerisourceBergen is having an incredibly strong day in the market today as reports surface that the company has been approached with a takeover offer. Apparently, Walgreens Boots Alliance Inc. has made a takeover approach to the drug distributor. Ultimately, if ABC agrees to the terms, Walgreens would have the ability to boost the profitability of its drugstore while increasing its competitive advantage.
According to these reports, CEO of Walgreens, Stefano Pessina reached out to Stevin Collis, CEO at ABC several weeks ago. The conversation was for the two to discuss the possibility of Walgreens buying Amerisource Bergen.
According to people close to the matter, the two companies are currently in early stage conversations with regard to a merger. However, no deal has been made as of yet, and there may not be a deal closed.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, one of the world’s largest drug distributors may be taken over, and if that does indeed happen, it would likely happen at a strong premium. So, it’s no surprise to see the stock gaining in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:58), ABC is trading at $96.43 per share after a gain of $6.98 per share or 7.80% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ABC. In particular, we’re interested in following the story surrounding the potential merger of the company with Walgreens. If this does happen, it would likely be a great thing for all parties involved. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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