- Wednesday, October 16, 2024
Amazon's acquisition of smart vacuum cleaner company iRobot for $1.4 billion is expected to receive full EU antitrust approval, according to Reuters. This news has delighted investors in iRobot, as shares of the Roomba maker surged 30% to $38.63 in premarket trading on Friday.
The initial agreement between Amazon and iRobot was valued at $61 per share. However, the terms were revised in July due to an increase in iRobot's net debt, resulting in a price of $51.75 per share. Despite the premarket jump, iRobot stock is trading below this price, indicating the potential for further gains if the acquisition is approved.
The European Commission initiated an antitrust investigation into the deal in July over concerns that it could limit competition in the robot vacuum cleaner market and strengthen Amazon's position as an online marketplace provider. The Commission expressed particular concern about Amazon potentially favoring iRobot products over those of its rivals on its marketplace.
However, the UK's antitrust regulator cleared the deal in June, stating that it would not have a detrimental impact on competition. It is now possible that the EU will follow suit.
Amazon's stock rose marginally by 0.1% ahead of the market open.
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