Cartel office is considering blocking
Takeover of iRobot wobbles – shares crash
January 19, 2024, 10:14 a.m
iRobot is becoming a pioneer in the industry with self-propelled vacuum cleaners. Large corporation Amazon would like to incorporate the company. However, antitrust authorities have concerns and are demanding adjustments to the takeover. Amazon allows the deadline to pass and thus throws the deal into doubt.
The European Union (EU)’s competition watchdogs apparently want to block Amazon’s $1.4 billion takeover of the vacuum cleaner robot manufacturer iRobot. Amazon was informed during a meeting with European Commission officials on Thursday that the deal would likely be rejected, The Wall Street Journal reported, citing people familiar with the matter. The company declined to comment for this report.
The U.S. tech giant had not addressed EU antitrust watchdogs’ concerns that the deal could limit competition in the robot vacuum cleaner market as of Jan. 10, according to an update on the European Commission’s website.
Amazon had announced its plans to purchase iRobot in August 2022 to expand its portfolio of smart devices. The company regularly pointed out that there was a lot of competition for iRobot.
The European Commission, which acts as the EU’s competition authority, has until February 14 to either approve or reject the deal. The vacuum cleaner manufacturer’s shares fell almost 40 percent to $14.3 after hours.
iRobot is best known for its self-propelled vacuum cleaners under the brand name Roomba. Newer models use cameras to create a 3D scan of the household and, thanks to artificial intelligence, can avoid cables or dog feces lying on the floor, for example. The US company was a pioneer in robotic vacuum cleaners, and devices of this type are now available from many suppliers.