US FTC seeks additional information on Walmart and Vizio's $2.3 billion deal

FILE PHOTO: Screens display logos and trading information for Walmart and Vizio as a trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 20, 2024. REUTERS/Brendan McDermid/File Photo

(Reuters) – The U.S. Federal Trade Commission has asked for more information from Vizio and Walmart regarding their proposed $2.3 billion deal, the smart-TV maker said on Tuesday.

U.S. lawmakers have sought for an increased scrutiny from the FTC on many multi-billion dollar deals that might risk higher prices and affect consumers.

Several deals including that of supermarket chain Kroger and its smaller rival Albertsons, as well as Coach parent Tapestry and Michael Kors owner Capri have come under the FTC’s radar as it looks to encourage fair, open and competitive markets.

Walmart had proposed to buy Vizio for $11.50 per share in cash in February, in another bet on the retailer’s fast-growing U.S. advertising business, Walmart Connect, and gaining access to Vizio’s SmartCast operating system, which streams ad-supported content on its devices.

The big-box retailer had said in March it had notified two U.S. antitrust agencies it would withdraw and refile a certain review application for its planned acquisition of Vizio, to give the regulators more time to review the deal.

Vizio said on Tuesday both the companies expect to “promptly respond” to the FTC’s request, while work “cooperatively” with the regulator as it conducts their review of the deal.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shilpi Majumdar)