Nov 28, 2023 - Business

Amazon's deal for Roomba maker runs into trouble in Europe

Dan Primack

Animated illustration of a roomba moving toward a wall that looks like the European Union flag and hitting it three times. — Illustration: Brendan Lynch/Axios

The European Commission on Monday objected to Amazon's proposed $1.7 billion acquisition of Roomba maker iRobot, saying it could restrict competition in robotic vacuum cleaners.

Why it matters: This is whiplash for iRobot shareholders.

Reuters last week reported that the deal would receive unconditional EC support, sending iRobot shares up 39% to an all-time high. But then the EC actually spoke, driving the stock down by 25%.

Details: Amazon can reply to the EC, including via an oral hearing, with the Commission to make a final decision by Feb. 14.

U.K. officials signed off over the summer, while the U.S. FTC continues to investigate.

The bottom line: Amazon is one of the world's most acquisitive companies, and hasn't yet had a deal formally blocked by antitrust regulators.

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Amazon's deal for Roomba maker runs into trouble in Europe

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