iRobot Soars 39% as EU Likely to Approve Amazon Deal.
The surge of iRobot’s shares by nearly 39% on Friday was sparked by optimistic reports hinting at the European Union’s anticipated approval of Amazon‘s $1.7 billion buyout of the company, renowned for its Roomba vacuum line.
This buzz followed a Reuters release suggesting that the EU was poised to grant “unconditional antitrust approval” for the acquisition, drawing from insights from three insiders familiar with the situation.
The European Commission is slated to finalize its decision on this transaction by February 14, further adding to this potential deal’s fervour.
While representatives from the European Commission refrained from immediate comments in response to CNBC’s inquiries, the deal’s progression in the EU contrasts with its ongoing scrutiny by the U.S. Federal Trade Commission.
In an earlier declaration, the U.K.’s Competition and Markets Authority assessed that this acquisition would not substantially diminish competition within the U.K. market in June.
Interestingly, this potential acquisition holds significance within Amazon’s strategic landscape.
The e-commerce giant announced its intent to acquire iRobot back in August 2022, proposing an all-cash deal of $61 per share.
Should this acquisition materialize, it would become Amazon’s fourth-largest deal in its acquisition history, following its notable $13.7 billion acquisition of Whole Foods in 2017, the $8.45 billion purchase of film studio MGM in 2021, and the $3.9 billion acquisition of primary-care provider One Medical, unveiled last July.
This move aligns with Amazon’s broader strategy of expanding its portfolio by integrating established brands and services into its ecosystem.
The potential addition of iRobot’s innovative technologies would likely complement Amazon’s existing suite of smart home devices and further enhance its presence in the home automation market.
