Wal-Mart: Amazon drives Walmart to consider closer relationship with Humana (HUM)
Stifel notes that, according to The WSJ, Walmart is in early discussions with Humana (HUM) involving a range of options, potentially including an acquisition. They believe an outright acquisition would be modestly accretive to Walmart earnings and potentially additive to store traffic, though would also meaningfully increase business complexity and risks. While they have no knowledge of any M&A negotiations or discussions, additional media reports suggest an expansion of an existing prescription drug plan partnership is most likely. They view this as a more favorable near-term option in that it would allow Walmart to learn more about the healthcare industry, and likely include closer ties that could add to Walmart's store traffic while also potentially reducing costs.