The UK's antitrust regulator has approved Amazon's proposed acquisition of iRobot, a billion-dollar deal under regulators' scrutiny. The regulator concluded that the acquisition would not raise any competition concerns in the UK, according to a report by TechCrunch.
Last August 2022, Amazon announced its plans to acquire iRobot, a prominent robot vacuum maker, for $1.7 billion. Such a substantial deal was expected to draw regulatory attention.
This picture taken on April 27, 2023 in Toulouse, southwestern France, shows a screen displaying the Amazon logo and the European flag. - European commissioner for the Internal Market Thierry Breton unveiled a list of 19 online platforms, including Instagram, TikTok and Twitter, as having user numbers so big they will come under stricter regulatory rules for content.
UK Approves
The European Commission (EC) is currently evaluating the deal and will make a decision by July 6, either clearing the deal with or without remedies or initiating a full-scale investigation. Meanwhile, the US Federal Trade Commission (FTC) is also considering an official investigation into the acquisition.
While the FTC recently approved Amazon's $3.9 billion acquisition of One Medical, it is reportedly seeking to halt Microsoft's planned $68.7 billion acquisition of Activision.
The outcome of Amazon's iRobot purchase remains uncertain in other jurisdictions, but today's development, where the Microsoft/Activision deal was recently blocked but is still subject to appeal, could serve as a sign of what is coming.
In a press release issued by Amazon last August 2022, the company expressed excitement about the merger agreement with iRobot-the acquisition aimed to leverage iRobot's practical and inventive solutions for cleaning and home automation.
Dave Limp, Senior Vice President of Amazon Devices, emphasized the significance of saving time for customers and praised iRobot's ability to reinvent cleaning routines with practical and inventive products. He expressed enthusiasm about collaborating with the iRobot team to further enhance customers' lives.
Colin Angle, Chairman and CEO of iRobot, echoed the sentiment, expressing pride in the company's mission to create innovative and practical products that empower customers.
Angle believed that Amazon shared its passion for thoughtful innovation and saw great potential in joining forces to continue its mission. He expressed excitement about the future and future possibilities for customers.
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$61 Per Share
Under the terms of the agreement, Amazon would acquire iRobot for $61 per share in an all-cash transaction totaling approximately $1.7 billion, including iRobot's net debt.
The completion of the deal is subject to customary closing conditions, including approval by iRobot's shareholders and regulatory authorities. Colin Angle is expected to remain the CEO of iRobot following the acquisition.
As the acquisition progresses, the UK's approval brings Amazon one step closer to realizing its iRobot ambitions. However, the outcome will depend on the decisions of regulators in other jurisdictions and their evaluation of the potential competition concerns associated with the deal.
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