Technology
EU deadline for iRobot acquisition by Amazon has passed: Amazon stock still in the green
Amazon has let a deadline pass during which the company could have submitted proposals to the European Union regarding remedial measures associated with the $1.7 billion acquisition of iRobot, the Roomba manufacturer.
Amazon has not submitted any remedies within the EU Commission's deadline to address concerns regarding the planned acquisition of Roomba manufacturer iRobot for $1.7 billion.
In November, the EU Commission expressed concerns after a thorough examination of the transaction that it could affect competition in the market for vacuum cleaning robots.
A formal communication from the Commission - the so-called Statement of Objections - was sent to Amazon to inform the company about the raised objections.
The acquisition was announced in August 2022, and the deadline for companies to submit remedies during the Phase 2 review ended on Wednesday. If companies submit remedies, they will be displayed on the EU website for the relevant project.
No remedial measures listed on the iRobot deal website. A spokeswoman for the European Commission confirmed on Thursday that the website is up to date. Amazon declined to comment.
The effects of this development were clearly visible as iRobot's stocks plummeted by nearly 20 percent on Wednesday and closed at 29.75 US dollars. In NASDAQ trading on Thursday, they temporarily rose by 4.59 percent to 31.11 US dollars. The US company iRobot is headquartered in Massachusetts.
The EU Commission now has until February 14th to make a final decision on the transaction. Meanwhile, on Thursday, the Amazon stock temporarily recorded a 0.35 percent increase in NASDAQ trading, reaching $154.29. Both companies will eagerly await the decision of the EU Commission.
The coming weeks will be crucial for the future of iRobot as the online retailer Amazon might encounter new obstacles in its efforts to enter the robotic vacuum cleaner market.
However, it remains to be seen whether the European Commission can actually address concerns about the acquisition. Investors and consumers will be curious to see how this matter develops further and what impact it will have on the market.
Regardless of the outcome of this specific acquisition, it is important to emphasize that the European Commission is always striving to promote competition in the market and prevent potential monopolies through targeted mergers.
This thorough and unbiased examination of mergers and acquisitions is crucial for maintaining a fair market and ultimately benefits consumers and businesses alike.
