The Federal Trade Commission (FTC) is investigating the $3.9 billion transaction between Amazon.com Inc. AMZN and 1Life Healthcare Inc. ONEM.
What Happened: According to a filing with the U.S. Securities and Exchange Commission, the FTC sent a notice to each company requesting “additional information and documentary materials” about the deal.
Amazon first announced a deal for One Medical, a primary care provider owned by 1Life, in July. The Seattle-based e-commerce giant reportedly outbid CVS Health Corp. CVS in an auction process.
See Also: Amazon Set To Face Tough Competition As It Expands Into The Healthcare Industry
Why It’s Important: A federal probe like this one may delay the acquisition process.
The request extends the waiting period imposed by the Hart-Scott-Rodino Act “until 30 days after One Medical and Amazon have substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC,” the filing stated.
The news is also a hiccup for Amazon CEO Andy Jassy, who took the helm from founder Jeff Bezos in July 2021. One of Jassy’s goals is to bolster Amzon’s healthcare offerings. The One Medical deal, Jassy’s first major M&A move as CEO, would give Amazon ownership of some 180 clinics.
See Also: How Has Amazon Performed This Past Year With New CEO Andy Jassy At The Helm?
What’s Next: Both companies are expected to “promptly respond” to the FTC’s inquiry and “work cooperatively” throughout the remainder of the review process, the filing continued.
Price Target: Amazon closed Friday at $127.51 per share — down 0.24%. Meanwhile, 1Life closed at $17.40 a share — up 0.35%.
Image: FTC Building, Wikimedia Commons
Image and article originally from www.benzinga.com. Read the original article here.