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iRobot shares plunge 19% on report Amazon won’t offer concessions to resolve EU probe

The closure of iRobot shares experienced a significant decline of 19% on Wednesday, following reports indicating that Amazon is unwilling to provide concessions to Europe's antitrust watchdog as part of its efforts to secure approval for the proposed $1.7 billion acquisition of the Roomba manufacturer.

iRobot shares plunge 19% on report Amazon won’t offer concessions to resolve EU probe

According to sources familiar with the matter, as highlighted in a Politico report, both companies have until the close of business on Wednesday to submit proposed alterations to Amazon's business practices within the European Union (EU) market.

It is noteworthy that Amazon, when approached for comment, chose not to respond, and there has been no immediate response from representatives of iRobot or the European Commission. In contrast, Amazon's shares concluded Wednesday with a modest increase of 1.5%.

Last November, the European Commission expressed concerns about the potential anti-competitive implications of the proposed acquisition, contending that Amazon might possess the capability to impede or diminish the access of iRobot's competitors to its online platform. This could be achieved through actions such as delisting products or reducing their visibility in search results and other relevant areas.

The European Commission initiated a thorough investigation into the acquisition in July, with a decision expected by February 14.

Amazon initially disclosed its intent to acquire iRobot in August 2022, proposing a $61 per share all-cash deal. Notably, the deal is still undergoing scrutiny by the U.S. Federal Trade Commission. In contrast, the U.K.'s Competition and Markets Authority, in June, asserted that the acquisition would not lead to a significant reduction in competition within the U.K., thereby giving its approval.

Overall, the news paints a comprehensive picture of the various elements at play in the ongoing saga surrounding Amazon's bid to acquire iRobot, shedding light on the complexities, regulatory challenges, and market responses shaping this high-stakes corporate development.