For the past week, Jim Cramer has highlighted the health care group as being ripe for consolidation. Not only are more Americans becoming insured these days, but more baby boomers are aging and require health care. As a result, Cramer singled out the health care plays as being in the perfect sweet spot.
Sure enough, not only did investors learn on Monday of Anthem's potential bid for Cigna but it was also announced that Cramer-fave CVS Health will purchase Target's pharmacy business for $1.9 billion. Some 1,700 Target pharmacies will be rebranded as CVS stores within a store, and many investors expect this to be significantly beneficial to CVS' earnings by 2017.
"This also seems like a no-brainer for Target because, in addition to the obvious $1.9 billion payday, they don't have any real edge in the pharmacy space so offloading this business should boost their margins," the "Mad Money" host said.
Cramer ultimately thinks this is a win-win deal for both CVS and Target. To hear more about what is in store for both companies, Cramer spoke with CVS Health CEO Larry Merlo and Target CEO Brian Cornell.