Amazon, iRobot abandon merger due to EU opposition

(Sharecast News) - Amazon and Roomba maker iRobot have agreed to terminate their planned merger amid opposition from EU regulators. Amazon announced in August 2022 that it had agreed to buy iRobot in a $1.7bn deal.

However, in a statement on Monday the companies said the proposed deal "has no path to regulatory approval" in the European Union, preventing them from moving forward together.

David Zapolsky, Amazon SVP 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."

iRobot founder Colin Angle said: "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."

Amazon will pay iRobot a $94m termination fee.

The news came alongside another announcement from iRobot, which said it plans to cut 31% of its workforce as part of a restructuring.