© Reuters Amazon scraps plans to buy iRobot amid EU opposition
Proactive Investors – Amazon.com Inc (NASDAQ:, ETR:AMZ) on Monday said it was scrapping plans to buy the iRobot vaccum maker after the EU’s antitrust authority objected to the plan over competition concerns.
“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon SVP and General Counsel.
Reports last week suggested the takeover was set to be blocked by the EU’s competition watchdog.
The deal had previously been given the all-clear for the purchase by the UK government’s competition watchdog.
The online giant moved to buy iRobot, maker of the Roomba cleaner, in August 2022 in a takeover deal set to cost $1.7 billion.
Regulators are worried that iRobot’s tie-up with Amazon could make it difficult for other vacuum-makers to compete, especially if Amazon were to give Roomba benefits over rivals on its e-commerce site.
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” Amazon said.
Following the collapse of the takeover by Amazon, iRobot said it is cutting 350 jobs or over 30% of its workforce.
Shares in Amazon rose 0.3% but those in iRobot plunged 17%.
