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EU Antitrust Body to Decide on Amazon’s iRobot Acquisition by February, Report Says

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The European Union’s (EU) antitrust regulators are expected to announce their decision on Amazon.com Inc.’s $1.4 billion purchase of iRobot Corp. by February 14th of next year, according to a report from Reuters.

The investigation into the acquisition was temporarily halted in order to gather additional information, extending the original deadline from December 13th.

Concerns have been raised regarding the potential impact of the deal on competition in the growing market of robotic vacuum cleaning devices.

Amazon revised its offer for iRobot, reducing the purchase price to approximately $1.42 billion due to increased debt on iRobot’s side.

As of Monday, AMZN shares were trading higher at $131.59.

Disclaimer: This content was partially produced with the assistance of AI tools and has been reviewed and published by Benzinga editors.

EU Antitrust Regulators Set to Rule on Amazon’s iRobot Deal

The European Union’s antitrust regulators are currently conducting an investigation into Amazon’s proposed acquisition of iRobot. This $1.4 billion deal has drawn significant attention from regulatory authorities, particularly concerning competition in the emerging market of robotic vacuum cleaning devices. The EU had initially set a deadline of December 13th for its decision, but the investigation was put on hold temporarily to gather further information. The revised deadline for the ruling is now February 14th of next year.

Concerns Over Competition and Market Impact

There are growing concerns from the EU’s competition authorities regarding the potential consequences of Amazon’s acquisition of iRobot. The assimilation of iRobot into Amazon’s portfolio has the potential to reduce competition in the niche market of robotic vacuum cleaning devices. This emerging market holds significant potential for growth, and authorities want to ensure fair competition and innovation in the industry. The decision on whether to approve the acquisition will take into account these concerns and the overall impact on market dynamics.

Amazon Adjusts Offer, Reducing Purchase Price

Due to changes in iRobot’s financial situation, Amazon has adjusted its offer for the acquisition. The original offer of $1.4 billion has been lowered to approximately $1.42 billion. iRobot has accumulated more debt, leading to this revision in the purchase price. This adjustment is expected to have implications for the overall deal structure and financial considerations. It remains to be seen how this change will affect the EU regulators’ decision.

The Market’s Response

Investors have been closely monitoring the developments surrounding the Amazon-iRobot deal. As of Monday, AMZN shares were trading higher by 3.01% at $131.59. The market’s response to the potential acquisition reflects optimism and faith in Amazon’s ability to navigate regulatory hurdles and leverage iRobot’s technology and market presence effectively. However, until a final decision is reached by the EU antitrust body, there may continue to be fluctuations in the market.

Conclusion

The EU’s antitrust regulators are currently reviewing Amazon’s proposed acquisition of iRobot. The outcome of this investigation will have significant implications for the competition and growth potential in the robotic vacuum cleaning device market. With concerns about reduced competition and market impact, the regulators are taking their time to gather all the necessary information to make an informed decision. Amazon’s adjusted offer and the market’s positive response to the potential deal demonstrate the significance and potential value of this acquisition. Investors and industry participants eagerly await the EU’s ruling, which is expected to be announced by February 14th next year.

Disclaimer: This content was partially produced with the assistance of AI tools and has been reviewed and published by Benzinga editors.

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