iRobot stock surges as UK regulators clear Amazon acquisition
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Shares of Roomba-manufacturer iRobot (NASDAQ:IRBT) rocketed over 20% higher in premarket trading after the UKâs Competition and Markets Authority OKâd its acquisition by Amazon.
The regulator said that a phase 1 investigation led the investigators to believe the combination will not cause a substantial lessening of competition in the nation. Therefore, the $1.7B deal will not be subject to further investigations in the UK.
âThe CMA has found, in light of Amazonâs broader business strategy and ongoing product development activities, that there was a realistic prospect that Amazon would have started to supply its own RVC product absent the Merger. The CMA also found, however, that iRobotâs market position in the UK is modest and that it already faces several significant competitors (including Ecovacs and Eufy, both of which have a higher market share than iRobot, as well as Roborock, Samsung and Dyson),â the decision explained. âOn this basis, the CMA has found that, even if Amazon would have entered the UK RVC market absent the Merger, there would in any event be sufficient remaining constraints to ensure that the Merger does not give rise to competition concerns in relation to loss of future competition in RVCs in the UK.â
While the acquisition continues to be reviewed in other jurisdictions, including the US and Europe, recent reports indicate discussions with regulators have progressed without issue thus far. Amazon (AMZN) said it has established âsubstantial complianceâ with FTC demands earlier in June.
iRobot (IRBT) stock rocketed 24% higher in premarket action on Friday as Amazon (AMZN) edged just slightly lower.
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