The Federal Trade Commission (FTC) is investigating the $3.9 billion transaction between $Amazon (AMZN.US)$ and $1Life Healthcare (ONEM.US)$.
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 $CVS Health (CVS.US)$ in an auction process.
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.
Price Target: Amazon closed Friday at $127.51 per share — down 0.24%. Meanwhile, 1Life closed at $17.40 a share — up 0.35%.