iRobot shares rise after UK regulator approves Amazon acquisition

  • The United Kingdom’s antitrust watchdog is planning a $1.7 billion takeover of Amazon’s iRobot.
  • Amazon announced in August that it was buying iRobot, best known for its robotic vacuum Roomba.
  • The Competition and Markets Authority has determined that the deal will not “significantly lessen competition” in the UK.

A vacuum Roomba model robot is shown at iRobot headquarters in Bedford, Massachusetts

Scott Eels | Bloomberg | Good pictures

Amazon’s planned acquisition of iRobot, maker of Roomba vacuums, for $1.7 billion has been given the green light by Britain’s competition watchdog.

Competition and Markets Authority He said it decides The deal will not result in a “substantial lessening of competition” in the UK

Shares of iRobot jumped more than 19% in early trading on news of the CMA’s approval. Amazon shares were flat.

An Amazon spokesperson told CNBC in a statement: “We are pleased with the UK Competition and Markets Authority’s decision and are committed to supporting the regulatory bodies in their work. We expect similar decisions from other regulators soon.”

Amazon announced last year that it was buying iRobot for $1.7 billion as part of a move to deepen its presence in the smart home. But the deal still stands Under review US Federal Trade Commission and European Union antitrust regulators, He opened an investigation earlier this month.

The CMA found in its review that iRobot’s market position in the UK is moderate and faces significant competition from several competitors. It also determined that the deal does not limit the ability of rival smart home platforms to compete and that Amazon has no clear incentive to support iRobot’s products in its online store.

See: Amazon’s smart home dominance and how it could grow with the iRobot acquisition

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