Shares of iRobot Plummet After Reports of EU Antitrust Block
Shares of iRobot plunged more than 33% in extended trading on Thursday following reports that the EU’s antitrust watchdog intends to block Amazon’s planned acquisition of the Roomba vacuum maker.
The Wall Street Journal reported that the European Commission held a meeting with Amazon representatives on Thursday to discuss the acquisition. Sources familiar with the matter stated that the commission was informed of the likely rejection of the acquisition proposal.
Amazon declined to comment on the reports. Furthermore, a representative from the European Commission did not immediately respond to a request for comment.
During extended trading, Amazon’s stock experienced a slight decrease.
In August 2022, Amazon announced its intention to acquire iRobot for $61 per share in an all-cash deal, valuing the smart vacuum maker at $1.7 billion.
The European Commission, being the top antitrust enforcer of the European Union, initiated an in-depth investigation into the acquisition last July. Commissioners expressed concern over potential competition issues, citing the possibility of Amazon impeding iRobot’s competitors from operating on its online marketplace. The EC argued that Amazon could remove or diminish the visibility of rival products in search results or other areas.
A ruling on the deal by the European Commission is expected by Feb. 14. Politico reported earlier this month that Amazon has no plans to offer concessions to address the Commission’s concerns about the acquisition.
The acquisition is also currently under review by the U.S. Federal Trade Commission. In June, the U.K.’s Competition and Markets Authority stated that the acquisition would not result in a substantial reduction in competition in the U.K.
