Yahoo Finance Walmart’s Vizio Acquisition to Undergo Full FTC Antitrust Probe
(Bloomberg) -- Walmart Inc.’s deal to buy smart-TV maker Vizio Holding Corp. will undergo an in-depth antitrust review by the Federal Trade Commission, Vizio said Tuesday.
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Vizio disclosed in a regulatory filing that the companies on Monday received a so-called second request seeking additional information from the antitrust agency. The request was expected. An in-depth review can lengthen the regulatory process by months or years, depending on the complexity of the transaction.
Walmart said in February that it agreed to buy Vizio for about $2.3 billion. The retail giant has said it expects to close the deal in the current fiscal year, which ends in January.
The acquisition is expected to accelerate Walmart’s fast-growing advertising business called Walmart Connect, which has been adding more capabilities online and in stores. It would help Walmart and its advertisers reach more shoppers and engage further with them.
The Bentonville, Arkansas-based company has been pushing to expand its nonretail businesses that have faster growth and better margins than its core operations. Walmart has said that the advertising business is among drivers of profitability growth.
The Biden administration has taken a more aggressive approach to challenging deals, with the FTC filing lawsuits to block the mergers of supermarket giants Kroger Co. and Albertsons Cos., and handbag rivals Tapestry Inc. and Capri Holdings Ltd.
Irvine, California-based Vizio’s shares were down 2.8% in premarket trading at 7:20 a.m. in New York. Walmart was off 0.1%.
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