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Irobot Corp(IRBT-Q)
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iRobot Shares Plunge 37% On Doubts About Amazon Takeover

Baystreet - Fri Jan 19, 7:56AM CST
Shares of iRobot (IRBT) are down 37% after media reports surfaced that the European Union’s antitrust watchdog plans to block Amazon’s takeover of the Roomba vacuum maker.

According to multiple media reports, the European Commission met with Amazon executives in recent days to discuss the deal and said that the acquisition is likely to be rejected.

Amazon announced in 2022 that it planned to acquire iRobot for $61 U.S. a share in an all-cash deal worth $1.7 billion U.S.

The European Commission antitrust agency opened an investigation into the purchase in July 2023 and says it is concerned that Amazon may prevent iRobot’s rivals from competing on its online marketplace.

Amazon could delist or reduce the visibility of rival robotics products in search results, the European Commission has said.

The Commission is expected to issue an official ruling on the deal Feb. 14.

Previous media reports have stated that Amazon doesn’t plan to offer any concessions to resolve the concerns in Europe and is likely to now drop the iRobot acquisition.

The takeover is still under review by the U.S. Federal Trade Commission. Britain’s Competition and Markets Authority has already approved the deal.

Prior to today (Jan. 19), iRobot’s stock was trading at $23.62 U.S. per share, down 50% over the last 12 months.

The stock of Amazon is little changed on this latest news and has gained 64% over the past 12 months to trade at $153.50 U.S. per share.

Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.

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