The U.K.’s antitrust watchdog, the Competition and Markets Authority (CMA), has cleared Amazon’s planned $1.7 billion acquisition of iRobot. The CMA said it determined that the deal would not result in “a substantial lessening of competition” in the U.K.
The CMA’s decision is a major victory for Amazon, which has been facing scrutiny from regulators around the world. The deal would give Amazon control of iRobot’s popular Roomba robotic vacuum cleaner, which is the top-selling robotic vacuum cleaner in the U.S.
iRobot’s stock surged 21% on news of the CMA’s approval. Amazon shares closed down 1%.
The CMA’s decision is not the final word on the deal. The European Commission is still reviewing the acquisition, and it could still block the deal. However, the CMA’s decision is a major step forward for Amazon, and it makes it more likely that the deal will be approved.
The acquisition of iRobot would give Amazon a major foothold in the growing market for robotic vacuum cleaners. The market for robotic vacuum cleaners is expected to grow from $3.5 billion in 2022 to $6.4 billion by 2027.
Amazon could use iRobot’s technology to improve its own line of robotic vacuum cleaners, and it could also use iRobot’s sales channels to sell iRobot’s products.
The acquisition of iRobot would also give Amazon a major advantage in the race to develop new robotic technologies. iRobot is one of the leading developers of robotic technologies, and it has a strong track record of innovation.
Amazon’s acquisition of iRobot is a major development in the tech industry. It is a sign that Amazon is continuing to expand its reach into new markets, and it is a sign that the company is serious about developing new robotic technologies.