CVS Health, an American retailer and health care company, which already dominates the heath care world, announced that it has agreed to buy Target's pharmacy and clinic businesses in a deal worth about $1.9 billion.

Adam J. Fein, president of Pembroke Consulting, a business research company based in Philadelphia, said in a statement that CVS Health is building a business that has lots of interlocking synergies in many different parts of the health care system.

"The target deal is one more step in their goal of becoming the most significant company in the drug distribution and reimbursement system", he said.

As per the deal's terms, CVS will acquire more than 1,600 pharmacies from Target in 47 states and operate them under the CVS name in Target stores.

It has been said that CVS will also operate branded pharmacies in new target stores that offer pharmacy services.

CVS said it also has plans to rebrand about 80 clinic locations previously operated by target under the MinuteClinic name, adding that they would be part of its plan to operate 1,500 clinics by 2017.

Larry J. Merlo, president and chief executive of CVS, said in a news release that their relationship with Target will support highly complementary customer base, brand and culture which they share.

He said this relationship will provide consumers expanded options and access to our unique health care services that lead to better health outcomes and lower overall health care costs.

Mr. Fein said the deal with Target would allow CVS to expand its business into areas of the country, like the Pacific Northwest, where its presence is weak.

CVS will open pharmacies in all new Targets that offer the service and up to 20 new clinics in Targets within the next three years of the deal's closing.