The British competition watchdog said that it is considering if the deal would create a relevant merger situation under the merger provisions of the Enterprise Act 2002 as well as investigate whether it would lead to a significant reduction in competition within any market or markets in the UK for services or goods
UK CMA plans to launch an investigation into Amazon’s $1.7bn acquisition of iRobot. (Credit: iRobot Corporation)
The UK Competition and Markets Authority (CMA) plans to launch an investigation into the previously announced Amazon’s $1.7bn acquisition of US-based consumer robot company iRobot.
The British competition watchdog said that it is considering if the deal would create a relevant merger situation under the merger provisions of the Enterprise Act 2002.
Besides, the regulator will investigate whether the proposed transaction would lead to a significant reduction in competition within any market or markets in the UK for services or goods.
For helping with its assessment, the CMA is seeking comments on the proposed acquisition from interested parties. The last date for filing the comments is expected to be announced soon.
The dates for the deadline for the phase 1 decision and launch of the merger inquiry are yet to be confirmed by the anti-trust regulator.
The all-cash deal between Amazon and the publicly-listed iRobot was announced 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.
Established in 1990 by Massachusetts Institute of Technology roboticists, iRobot is engaged in designing and developing “thoughtful” robots and “intelligent” home innovations like robotic cleaning products.
The company introduced its Roomba robot vacuum in 2002.
IRobot’s offerings are said to include technologies and advanced concepts in cleaning, mapping and navigation.
In September 2022, the proposed transaction was reported to have come under the scanner of the US Federal Trade Commission (FTC).
The FTC is expected to cover head-to-head competition and study whether the merger will illegally increase Amazon’s market share in the connected device market and the retail market also, in general.