A vacuuming Roomba design robot is displayed at iRobot headquarters in Bedford, Massachusetts
Scott Eells | Bloomberg | Getty Images
Amazon‘s prepared $1.7 billion acquisition of iRobot, the maker of Roomba vacuums, has been greenlit by Britain’s opposition watchdog.
The Competitiveness and Markets Authority explained it identified the offer would not result in “a considerable lessening of competitiveness” in the U.K. The CMA opened its probe into the proposed order in April.
iRobot’s stock climbed extra than 19% in premarket trading on information of the CMA’s approval. Amazon shares had been flat.
An Amazon spokesperson explained to CNBC in a assertion: “We’re pleased with the British isles Level of competition and Markets Authority’s decision and are committed to supporting regulatory bodies in their work. We glimpse ahead to equivalent decisions from other regulators soon.”
Amazon announced past yr it would get iRobot for $1.7 billion, as section of a transfer to deepen its existence in the wise home. But the deal is nonetheless under review by the U.S. Federal Trade Commission, as perfectly as European Union antitrust regulators, who opened a probe before this thirty day period.
The CMA stated it found in its overview that iRobot’s industry placement in the U.K. is modest, and that it faces considerable competition from numerous rivals. It also established the offer would not restrict rival sensible home platforms’ capability to compete, and that there was no crystal clear incentive for Amazon to favor iRobot’s merchandise on its on the internet retail store.
Watch: Amazon’s intelligent household dominance and how it could expand with iRobot acquisition
