UK Competition and Markets Authority (CMA) approved the planned acquisition I am a robotfamous vacuum cleaner manufacturer rumbae-commerce giant Amazon. The agreement, with an estimated value of US$1.7 billion, was seen by the UK regulator as not resulting in “significant reduction in competitionin the country’s market. A CMA investigation into the deal began in April, and now, after approval, iRobot shares are up more than 19% in initial talks, reflecting investor confidence in the deal. Amazon shares are on the other hand held still.

An Amazon representative commented on the CMA’s decision in a statement to CNBC, expressing satisfaction with the outcome: “We are pleased with the decision of the UK Market and Competition Authority and are committed to supporting regulators in their work. We look forward to similar decisions from other regulators in the near future.“Amazon announced its intention to acquire iRobot last year as part of its strategy to strengthen its presence in the smart home market. However, while approval has been received in the UK, the deal is still under review by the US Federal Trade Commission. and the competition authorities of the European Union, which recently launched an investigation into the deal.

In reviewing the agreement, the CMA concluded that iRobot occupies a modest position in the UK market and faces significant competition from a number of competing companies. In addition, the regulator determined that the acquisition would not prevent other smart home platforms from competing in the market, and also found no evidence that Amazon would have a clear incentive to favor iRobot products in its online store.

Purchase is still subject to other regulators

While approval in the United Kingdom is an important step towards completing the acquisition, Amazon still has to wait for regulatory decisions in the US and the European Union. The US Federal Trade Commission and EU antitrust authorities are investigating the deal to assess its impact on competition and ensure that there are no anticompetitive practices. The result of these analyzes will directly affect the future acquisition and its implementation in the respective markets.

However, if the deal goes global, Amazon’s acquisition of iRobot will further solidify the e-commerce company’s presence in the smart home sector. iRobot is known for its innovative products such as its Roomba vacuum cleaners, which are popular all over the world. With the inclusion of iRobot, Amazon will be able to expand its offering of smart home devices as well as strengthen its competitive position in a growing market. Now it remains to wait for the decision of the US and EU regulators in order to have a complete picture of the future fate of this deal.

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Source: CNNBC.

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