Takeaways
- iRobot shares climbed after a report indicated that European regulators could give the green light to the Amazon acquisition.
- The acquisition of the robot maker #39;Roomba vacuum cleaners are valued at $1.4 billion, down from the reported $1.7 billion. was originally announced in August last year.
- EU officials opened an in-depth investigation into the deal in July, raising concerns that Amazon could restrict competition.
- British regulators approved the transaction in June.
Shares of iRobot (IRBT) soared after Reuters reported that Amazon's (AMZN) purchase of vacuum cleaner maker Roomba for $1.4 billion could get the ;unconditional approval of the European Union (EU).
Amazon reduced the price of the deal in July of this year, down from $1.7 billion when it was first announced in August 2022. At the time, iRobot CEO Colin Angle , had said that Amazon shares his company's passion for creating thoughtful innovations that enable people to do more at home, and “I can't think of a better place for our team to continue our mission.”
However, the European Commission, which oversees antitrust matters for the EU, opened an “in-depth investigation” into the acquisition earlier this year. The commission explained that it was concerned that the transaction “would allow Amazon to restrict competition in the robot vacuum cleaner (“RVC”) market and strengthen its position as an online marketplace provider.” Officials were expected to announce their decision by February 14.
The British Authority of Competition and Markets (CMA) gave its approval in June.
iRobot shares added nearly of a third of their value to the information. Amazon shares were little changed.
Source: investopedia.com