Roomba model robot vacuum cleaner on display at iRobot headquarters in Bedford, Mass.
Scott Els | Bloomberg | Getty Images
amazonPlanned $1.7 Billion Acquisition i am a robotthe maker of the Roomba vacuum cleaner, has received approval from the UK competition watchdog.
Competition and Markets Authority say sure The deal would not result in a “substantial reduction in competition” in the UK, which the CMA began investigating the proposed takeover in April.
Shares of iRobot jumped more than 19% in premarket trading on news of the CMA approval. Amazon shares were flat.
An Amazon spokesperson told CNBC in a statement: “We are satisfied with the UK Competition and Markets Authority’s decision and are committed to supporting the regulator’s work. We look forward to similar decisions from other regulators soon.”
Amazon announced last year that it would acquire iRobot for $1.7 billion as part of a move to deepen its presence in the smart home.but the transaction is still under review The US Federal Trade Commission and EU antitrust regulators, who launched the investigation earlier this month.
The CMA said it found in its review that iRobot had a moderate market position in the UK and faced strong competition from a number of rivals. It also determined that the deal won’t limit the ability of rival smart home platforms to compete, and that Amazon has no clear incentive to favor iRobot’s products in its online store.
watch: Amazon’s dominance of the smart home and how it can grow with iRobot acquisition
