Earlier this month, the British competition watchdog announced plans to launch the investigation into the proposed merger and the regulator has set itself a deadline of 16 June 2023 on whether to refer the deal for a deeper phase 2 probe or not
UK CMA launches phase 1 investigation into Amazon’s $1.7bn acquisition of iRobot. (Credit: iRobot Corporation)
The UK Competition and Markets Authority (CMA) has launched a phase 1 investigation into Amazon’s previously announced $1.7bn acquisition of US-based consumer robot company iRobot.
Earlier this month, the British competition watchdog revealed plans to launch the investigation into the proposed merger.
The regulator then said that it was considering whether the transaction would lead to a relevant merger situation under the merger provisions of the Enterprise Act 2002.
The UK CMA also said that it would investigate if the deal would stifle competition within any market or markets in the UK for services or goods.
For helping with the assessment, the CMA sought comments on the proposed acquisition from any interested parties. The last date for filing the comments is 3 May 2023.
The regulator has set itself a deadline of 16 June 2023 on whether to refer the deal for a deeper phase 2 probe or not.
In a statement, the competition authority said: “The Competition and Markets Authority (CMA) hereby gives notice pursuant to section 96(2A) of the Act that the merger notice provided by Amazon.com, Inc (Amazon) and iRobot Corporation (iRobot) in relation to the anticipated acquisition by Amazon of iRobot (the Merger) meets the requirements of section 96(2) of the Act.”
Amazon agreed to the all-cash deal with the publicly-listed iRobot in August 2022.
As per the terms of the transaction, shareholders of the consumer robot company will be paid $61 per share by the e-commerce major.
iRobot was founded by Massachusetts Institute of Technology roboticists in 1990.
The company is involved in designing and developing “thoughtful” robots and “intelligent” home innovations like robotic cleaning products.
The Roomba robot vacuum was introduced by the company in 2002.