Amazon and iRobot abandoned a $1.7 billion deal due to opposition from the EC – Kommersant
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Today, January 29, Amazon Corporation stated, which agreed to terminate the deal with the American manufacturer of robotic vacuum cleaners iRobot. The two companies agreed to a deal worth $1.7 billion in August 2022. The statement said that the refusal of the deal is due to the fact that the companies do not see “a way to obtain regulatory approval in the European Union.” Under the terms of the agreement, Amazon will pay iRobot $94 million to abandon the deal.
Earlier media wrote, that the European Commission is going to block the deal: in its opinion, the merger could limit competition in the market for robotic vacuum cleaners, since Amazon has the ability to restrain the sales of iRobot’s competitors on its marketplace and at the same time promote iRobot’s sales. The vacuum cleaner maker today said it would cut 31% of its workforce—about 350 people—and replace its CEO if Amazon doesn’t acquire it. iRobot shares fell 10%.
In December, Adobe and Figma refused from a $20 billion deal due to opposition from EU and UK regulators.
The history of Amazon – in the material “Sky Amazon”.
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