CVS stock was down on Wednesday following news of a deal between WellCare Health Plans (NYSE:WCG) and Centene (NYSE:CNC).

The bad news for CVS (NYSE:CVS) has to do with these two companies coming together to create a larger healthcare company. This larger healthcare company means a that CVS will be facing a stronger contender in the market.

Michael Neidorff, Chairman and CEO of Centene, has this to say about the deal.

“This transformational combination creates a leading healthcare enterprise that is committed to helping people live healthier lives through a localized approach and provides access to high-quality healthcare through a wide range of affordable health solutions. With the addition of WellCare, we expect to bolster and diversify our product offerings, increase our scale and have access to new markets, which will in turn, enable us to continue investing in technology and better serve members with innovative programs designed to meet their needs.

WellCare Health Plans and Centene still need to complete certain conditions before the deal can close. This includes getting approval from regulators and shareholders. If all goes well, the two companies are expecting  the deal to close during the first half of 2020.

You can learn more about the deal between WellCare Health Plans and Centene that has CVS stock down today by following this link.

CVS stock was down 3% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.