iRobot shares tank 30% on report EU plans to block Amazon acquisition

Roomba robotic vacuums made by iRobot are displayed on a shelf at a Target retailer in San Rafael, California, on Aug. 05, 2022.

Justin Sullivan | Getty Images

Shares of iRobot plunged greater than 33% in prolonged buying and selling on Thursday after a report mentioned the EU’s antitrust watchdog intends to block Amazon‘s deliberate acquisition of the Roomba vacuum maker.

The Wall Street Journal reported the European Commission met with Amazon representatives on Thursday to talk about the deal and was instructed the acquisition would doubtless be rejected, citing folks acquainted with the matter.

Amazon declined to remark. A consultant from the European Commission did not instantly reply to a request for remark.

Amazon’s inventory fell barely in prolonged buying and selling.

Amazon announced it might purchase iRobot in August 2022 for $61 per share in an all-cash deal that values the sensible vacuum maker at $1.7 billion.

The European Commission, the European Union’s high antitrust enforcer, opened an in-depth probe into the acquisition final July. The group warned the deliberate acquisition raises competitors issues, saying it discovered Amazon might hinder iRobot’s rivals from competing on its on-line market. Amazon might delist or scale back the visibility of rivals’ merchandise in search outcomes or different areas, the EC argued.

The EC is predicted to rule on the deal by Feb. 14. Earlier this month, Politico reported Amazon would not plan to provide concessions to resolve the group’s issues concerning the acquisition.

The deal continues to be beneath assessment by the U.S. Federal Trade Commission. The U.Okay.’s Competition and Markets Authority said in June that the deal wouldn’t end in “a considerable lessening of competitors” within the U.Okay.

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