Amazon (AMZN.O) and vacuum cleaner robot manufacturer iRobot (IRBT.O) announced Monday that they would abandon their plans to merge due to opposition from EU antitrust regulators.
iRobot announced the restructuring, saying it would cut about 31% of its workforce, or 350 jobs, with Colin Angle stepping down as CEO.
Amazon claimed that regulators in the European Union disapproved of its $1.4 billion purchase of iRobot. The European Commission voiced concerns that after the merger, Amazon could hamper iRobot’s competitors in its online market, especially in France, Germany, Italy, and Spain.
The deal was announced by Amazon in August 2022. The company planned to expand its line of smart home devices as well as virtual healthcare. David Zapolsky, Amazon’s general counsel, stated:
We’re disappointed that Amazon’s acquisition of iRobot could not proceed. We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products.
After the announced cancellation of the merger, iRobot shares fell 14.7 per cent. However, critics has also supported the deal termination as Amazon already leads the market of smart home devices.
