Walmart is in Early Stage Talks to Buy Humana Inc.

One of the biggest headlines on Friday was that U.S. retail giant Walmart Inc. is in the early stages of discussions to possibly buy Humana Inc., an American health insurance company based in Louisville, Kentucky.

According to unidentified sources as the talks are still confidential, Walmart had approached the company in early March and the current deliberations are still preliminary.

The sources have said that conversations have been revolved around new partnerships but the acquisition of the company by Walmart is also possibly on the table.

This acquisition could be pretty significant if it were to happen as rival Amazon is also reportedly looking to enter the healthcare arena.

According to Neil Saunders, the managing director of GlobalData Retail, “The risks (for Walmart) of becoming entangled in the complex U.S. healthcare industry are considerable, especially at a time when Walmart is grappling with the competitive challenges of a rapidly shifting retail market.”

“The hammering out of any agreement, which would be Walmart’s largest ever corporate deal, would, of itself, be an enormous distraction,” Saunders believes.

Disclaimer: We have no position in Walmart Inc. (NYSE: WMT) and have not been compensated for this article.