iRobot shares increased nearly 22% after the U.K. controller removed Amazon’s purchase

June 19, 2023: Amazon’s planned $1.7 billion acquisition of iRobot, the maker of Roomba vacuums, has been greenlit by Britain’s competition protection.

The Competition and Markets Authority determined the deal would not result in “a substantial which lessens of the match” in the U.K. The CMA opened its probe into the proposed purchase in April.

iRobot’s stock climbed more than 19% in afternoon trading on the CMA’s approval news. Amazon shares were down slightly.

An Amazon spokesperson stated: “We’re pleased with the U.K. Competition and Markets Authority’s decision and are committed to supporting regulatory bodies in their work. We look forward to similar decisions from other regulators soon.”

Amazon announced last year it would acquire iRobot for $1.7 billion as part of a move to deepen its presence in the smart home.

But the deal is still under review by the U.S. Federal Trade Commission and European Union antitrust regulators, who opened a probe earlier this month.

The CMA said in its review that iRobot’s market position in the U.K. is modest and faces significant competition from several rivals. It also determined that the deal would not limit rival innovative home platforms’ ability to compete and that Amazon needed a clear incentive to favor iRobot’s products on its online store.

While the acquisition continues to be reviewed in other jurisdictions, including the U.S. and Europe, recent reports indicate discussions with regulators have progressed without issue thus far. Amazon (AMZN) stated it had established “substantial compliance” with FTC demands earlier in June.

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iRobot shares increased nearly 22% after the U.K. controller removed Amazon’s purchase