News
Timothy A. Price
- January 19, 2024
Officials from the European Commission informed Amazon during a meeting on Thursday that the iRobot deal is likely to be rejected, according to sources familiar with the matter as reported by The Wall Street Journal. Both Amazon and the European Commission declined to comment on the report.
Following this news, iRobot shares plummeted by 36% in premarket trading, reaching $15.01, while Amazon shares saw a slight increase of 0.6%.
In August 2022, Amazon initially struck a deal to acquire iRobot for $61 per share, which was later reduced to $51.75 per share. This acquisition would have expanded Amazon's range of smart products, including the Alexa virtual assistant, Ring doorbells, and Smart thermostats.
The rejection doesn't come as a complete surprise. In November 2023, the European Commission sent Amazon a statement of objections regarding the proposed deal, expressing concerns about potential competition restrictions in the robotic vacuum cleaner market. Amazon did not submit any proposed remedies in response.
However, in December, Adobe decided to withdraw its $20 billion offer to acquire design-software company Figma because of objections raised by European regulators.
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