Why 1Life Healthcare Stock Is Soaring After Hours — And How Amazon Fits Into The Equation

1Life Healthcare Inc ONEM shares are surging in after-hours trading Tuesday following reports the Federal Trade Commission won't challenge Amazon.com Inc's AMZN takeover bid.

What To Know: According to a Bloomberg report citing people familiar with the decision, the FTC doesn't plan to challenge Amazon's $3.49-billion acquisition of 1Life Healthcare, the parent company of One Medical. 

The FTC does plan to issue a so-called "pre-consummation warning letter" to both companies to inform them that the agency's investigation is not closed, despite the antitrust review deadline being reached.

"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," an FTC spokesperson reportedly said.

As a result of the FTC decision, the deal is now expected to close this week, despite the ongoing fair competition review.

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ONEM Price Action: 1Life Healthcare shares were up 8.5% at $17.87 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Amazon.