Amazon, iRobot abandon merger
Technology
Amazon, iRobot abandon merger
WASHINGTON (Reuters) - Amazon (AMZN.O) and robot vacuum maker iRobot (IRBT.O) said Monday they would end their plans to merge in the face of opposition from EU antitrust regulators.
iRobot announced a significant restructuring plan to reduce costs and said it would cut about 31% of its workforce or 350 jobs. The company also said Colin Angle has stepped down as its CEO.
Amazon said its proposed $1.4 billion acquisition of iRobot had no path to regulatory approval in the European Union. Reuters reported earlier this month the deal would be blocked by European Commission antitrust regulators and that its main concerns were that Amazon may thwart iRobot rivals on its online marketplace, especially in France, Germany, Italy, and Spain.
Amazon announced the deal in August 2022. The world's largest online retailer, which already owns Alexa and Ring, was pushing to expand its stable of smart home devices as well as expanding the e-commerce giant's virtual healthcare.
"We're disappointed that Amazon's acquisition of iRobot could not proceed," said David Zapolsky, Amazon's general counsel. "We're believers in the future of consumer robotics in the home and have always been fans of iRobot's products," he added in a statement.
iRobot shares fell 14,7% in trading before the market opened.
Critics opposed the deal, saying it would strengthen Amazon.com's already powerful position in smart home devices.
