Home Business News Amazon and iRobot terminate planned merger due to EU opposition

Amazon and iRobot terminate planned merger due to EU opposition

by LLB Reporter
29th Jan 24 3:35 pm

Amazon and iRobot have agreed to terminate their planned merger due to opposition from EU competition regulators.

Amazon had agreed to the proposed acquisition for £1.3 billion of the vacuum cleaner company in August 2022.

The EU said in November that in their preliminary review they found the merger could harm competition for iRobot’s rival on Amazon’s online marketplace.

David Zapolsky, Amazon senior vice president and general counsel, said: “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, which delight consumers and solve problems in ways that improve their lives.

“Amazon and iRobot were excited to see what our teams could build together, and we’re deeply grateful to everyone who worked tirelessly to try and make this collaboration a reality.

“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable.

“Mergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries, that aren’t subject to the same regulatory requirements in fast-moving technology segments like robotics.

“Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition – the very things that regulators say they’re trying to protect.”

The firm’s founder, Colin Angle, said, “iRobot is an innovation pioneer with a clear vision to make consumer robots a reality.

“The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better, and that our customers around the world love.”

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