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  • British regulators approved Amazon’s $1.7 billion purchase of iRobot.
  • Officials said the deal would not raise competition concerns.
  • The US FTC has yet to rule on the deal.

i robot (IRBT) shares skyrocketed after the UK antitrust regulators approved Amazon (AMZN) Purchase of vacuum cleaner maker Roomba for $1.7 billion.

The UK’s Competition and Markets Authority (CMA) concluded after a “thorough investigation” that the deal “does not give rise to competition concerns in the UK”.

In making its decision, the CMA cited current vacuum cleaner competitors iRobot and explained that Amazon would not benefit from using its power as an online retailer to try to limit sales of similar devices or other “smart home” products.

Amazon said it was pleased with the decision, adding that it looked forward to similar decisions from other regulators soon. The deal, which was struck last August, still faces review by the US Federal Trade Commission (FTC).

Shares of iRobot surged 20% in early trading on the news on Friday, putting it in positive territory for the year. Amazon shares fell 0.7%.

YCharts


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