Amazon Calls Off Bid To Buy Robot Vacuum Cleaner IRobot Amid Scrutiny In The US And Europe
HuffPost
Amazon has called off its proposed acquisition of iRobot, with the ecommerce giant blaming "undue and disproportionate regulatory hurdles.".
LONDON (AP) — Amazon called off its purchase of robot vacuum maker iRobot on Monday, blaming “undue and disproportionate regulatory hurdles” after the European Union signaled its objection to the deal.
The companies said in joint statement that they were disappointed but mutually agreed to terminate the acquisition. The deal faced antitrust scrutiny on both sides of the Atlantic, but most strongly in Europe, where regulators investigating competition concerns were expected to issue a final decision by Feb. 14.
Amazon announced in 2022 that it would buy iRobot, maker of the circular-shaped Roomba vacuum, for $1.7 billion in cash. But the value of the deal fell 15% after iRobot incurred new debt.
Amazon will pay the Bedford, Massachusetts-based company a previously agreed termination fee of $94 million, iRobot said in a separate announcement, which also disclosed that it would lay off about 31% of its staff and see its CEO depart.
The European Commission, the European Union’s executive arm and top antitrust enforcer, had informed Amazon last year of its “preliminary view” that the iRobot acquisition would hurt competition in the industry.
