In November 2020, Amazon launched Amazon pharmacy to offer free, today home delivery of prescription to Amazon prime subscribers. The move is arguably Amazons broadest push into the healthcare business. In the aftermath of Amazons entry into this market, CVS and Walgreens engage in talks to negotiate an acquisition of Walgreens by CVS. Knowing what you know, as a consumer, about the three firms, answer the following questions about this potential acquisition.

a) Determine if this acquisition is vertical, horizontal, or conglomerate and very briefly defend your choice.

b) What do you think the main motivations behind this acquisition are?

c) What are the potential obstacles to this acquisition?

Answer rating: 100% (QA)

a This potential acquisition between CVS and Walgreens can be classified as a horizontal acquisition Horizontal acquisitions occur when two companies ... View the full answer