Amazon, iRobot abandon merger in face of EU opposition (updated)

iRobot

29/01/2024 13:59

(Adds iRobot restructuring plan in paragraph 2, Amazon comment
paragraph 5, share price paragraph 6)
    By David Shepardson
       WASHINGTON, Jan 29 (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.

 (Reporting by David Shepardson; Editing by Chizu Nomiyama)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))