Amazon abandons $1.4bn iRobot deal over EU resistance
E-commerce giant concedes there's no chance of regulatory approval in Europe
29 January 2024 - 17:13
byDavid Shepardson
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Washington — Amazon and robot vacuum maker iRobot said Monday they would end their plans to merge in the face of opposition from EU antitrust regulators.
iRobot announced a significant restructuring plan to reduce costs and said it would cut about 31% of its workforce, or 350 jobs. The company also said Colin Angle has stepped down as its CEO.
Amazon said its proposed $1.4bn acquisition of iRobot had no path to regulatory approval in the EU. It was reported earlier this month the deal would be blocked by European Commission antitrust regulators and that its main concerns were that Amazon may thwart iRobot rivals on its online marketplace, especially in France, Germany, Italy and Spain.
Amazon announced the deal in August 2022. The world’s largest online retailer, which already owns Alexa and Ring, was pushing to expand its stable of smart home devices and virtual healthcare offerings.
“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon’s general counsel. “We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products,” he added in a statement.
Critics opposed the deal, saying it would strengthen Amazon.com’s already powerful position in smart home devices.
iRobot shares fell 14.7% in trading before the market opened.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Amazon abandons $1.4bn iRobot deal over EU resistance
E-commerce giant concedes there's no chance of regulatory approval in Europe
Washington — Amazon and robot vacuum maker iRobot said Monday they would end their plans to merge in the face of opposition from EU antitrust regulators.
iRobot announced a significant restructuring plan to reduce costs and said it would cut about 31% of its workforce, or 350 jobs. The company also said Colin Angle has stepped down as its CEO.
Amazon said its proposed $1.4bn acquisition of iRobot had no path to regulatory approval in the EU. It was reported earlier this month the deal would be blocked by European Commission antitrust regulators and that its main concerns were that Amazon may thwart iRobot rivals on its online marketplace, especially in France, Germany, Italy and Spain.
Amazon announced the deal in August 2022. The world’s largest online retailer, which already owns Alexa and Ring, was pushing to expand its stable of smart home devices and virtual healthcare offerings.
“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon’s general counsel. “We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products,” he added in a statement.
Critics opposed the deal, saying it would strengthen Amazon.com’s already powerful position in smart home devices.
iRobot shares fell 14.7% in trading before the market opened.
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