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A prototype Roomba vacuum-powered robot is on display at iRobot’s headquarters in Bedford, Mass.
Scott Eiles | bloomberg | Getty Images
AmazonThe planned acquisition is worth $1.7 billion iRobotmanufacturer of Roomba vacuums, was green-lit by the British competition watchdog.
Competition and Markets Authority He said it was designed The deal will not “significantly reduce competition” in the UK. The CMA opened its investigation into the proposed purchase in April.
iRobot stock rose 21% after news of the CMA’s approval. Amazon shares closed down 1%.
“We are pleased with the UK Competition and Markets Authority’s decision and are committed to supporting regulators in their work. We look forward to similar decisions from other regulators soon,” an Amazon spokesperson told CNBC in a statement.
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 deal still stands under review by US Federal Trade Commission, as well as European Union antitrust agencies, which opened the investigation earlier this month.
The CMA said it found in its review that iRobot’s market position in the UK was modest and that it faced significant competition from many competitors. It also determined that the deal would not limit the competitiveness of competing smart home platforms and that there was no clear incentive for Amazon to favor iRobot products in its online store.
He watches: Amazon’s Dominance of Smart Homes and How It May Grow with the iRobot Acquisition
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