Amazon officially closes One Medical deal
Illustration: Aïda Amer/Axios
Amazon closed its $4 billion acquisition of One Medical today after the FTC said it would not challenge the deal, but noted regulators will still be investigating its possible competitive and consumer harm.
Why it matters: It's a good sign for CVS, which has two mega-deals hanging in the balance.
Zoom in: CVS is still trying to close its $8 billion deal for Signify Health, which is under DOJ review.
- A couple of weeks ago, the company announced it was acquiring the Medicare-focused primary care operator Oak Street Health for about $10.5 billion.
What they're saying: "The FTC and DOJ are reviewing many more deals than they did in the past — for better or for worse — but not enough to discourage deals from getting done," Martin Gaynor, professor of economics and health policy at Carnegie Mellon University, tells Axios.
- Gaynor said clearance of Amazon/ONEM "would mean to me that this recent CVS and Oak Street deal will follow suit."
- Gaynor has consulted with the FTC, the Department of Justice and the California Department of Corporations.
Yes, but: “The FTC’s investigation of Amazon’s acquisition of One Medical continues,” FTC spokesman Douglas Farrar said.
- “The commission will continue to look at possible harms to competition created by this merger, as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical.”
