iRobot shares tank 30% on report EU plans to dam Amazon acquisition

Shares of iRobot plunged greater than 33% in prolonged buying and selling on Thursday after a report stated the EU’s antitrust watchdog intends to dam Amazon‘s deliberate acquisition of the Roomba vacuum maker.

The Wall Street Journal reported the European Fee met with Amazon representatives on Thursday to debate the deal and was instructed the acquisition would probably be rejected, citing folks accustomed to the matter.

Amazon declined to remark. A consultant from the European Fee did not instantly reply to a request for remark.

Amazon’s inventory fell barely in prolonged buying and selling.

Amazon announced it will purchase iRobot in August 2022 for $61 per share in an all-cash deal that values the sensible vacuum maker at $1.7 billion.

The European Fee, the European Union’s prime antitrust enforcer, opened an in-depth probe into the acquisition final July. The group warned the deliberate acquisition raises competitors issues, saying it discovered Amazon might hinder iRobot’s rivals from competing on its on-line market. Amazon might delist or scale back the visibility of rivals’ merchandise in search outcomes or different areas, the EC argued.

The EC is predicted to rule on the deal by Feb. 14. Earlier this month, Politico reported Amazon would not plan to supply concessions to resolve the group’s issues in regards to the acquisition.

The deal remains to be underneath overview by the U.S. Federal Commerce Fee. The U.Ok.’s Competitors and Markets Authority said in June that the deal wouldn’t end in “a substantial lessening of competition” within the U.Ok.