Key Points
- Realm UK regulators have approved Amazon's $1.7 billion purchase of iRobot.
- Officials said the deal would not result in any competition concerns.
- The US FTC has yet to make a decision on the deal.
iRobot (IRBT) shares soared after UK antitrust regulators approved $1.7 billion purchase by Amazon (AMZN) of vacuum maker Roomba.
Britain's Competition and Markets Authority (CMA) said after a “thorough investigation” it had concluded the deal “would not cause competition concerns in the UK”.
In making its decision, the CMA cited current iRobot vacuum rivals and explained that Amazon would not profit from using its strength as an online retailer to try to limit sales of similar devices or products. #39;other “smart home” products.
Amazon was satisfied with the decision, adding that she looks forward to similar decisions by other regulators soon. The deal, which was completed last August, is still under review by the US Federal Trade Commission (FTC).
iRobot rose 20% in early trading Friday after the news, pushing them into positive territory for the year. Amazon shares decreased by 0.7%.
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Source: investopedia.com