Amazon is scrapping its planned takeover of vacuum maker iRobot following opposition from EU competition authorities.
The companies said in a joint statement that they were “disappointed” but there was no clear regulatory path for the purchase of the Roomba maker.
First announced in 2022, the deal would have been one of Amazon’s largest ever acquisitions.
First announced in 2022, the deal would have been one of Amazon’s largest ever acquisitions.
The robot vacuum maker has seen sales decline and it said it would immediately embark on a restructuring, which will see 350 jobs axed, or 31% of its staff.
The company is also shrinking its office footprint and scaling back spending on research. Its chief executive is also leaving.
In the announcement, the companies said the decision to scrap the deal was mutual and Amazon would pay the previously agreed $94m break-up fee.
Amazon said the outcome was an indication that regulatory decisions to block mergers in the name of increasing competition and protecting consumers from monopolies were backfiring.
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” said David Zapolsky, Amazon senior vice president and general counsel.
Amazon is scrapping its planned takeover of vacuum maker iRobot following opposition from EU competition authorities.
First announced in 2022, the deal would have been one of Amazon’s largest ever acquisitions.
The companies said in a joint statement that they were “disappointed” but there was no clear regulatory path for the purchase of the Roomba maker.
The robot vacuum maker has seen sales decline and it said it would immediately embark on a restructuring, which will see 350 jobs axed, or 31% of its staff.
First announced in 2022, the deal would have been one of Amazon’s largest ever acquisitions.
First announced in 2022, the deal would have been one of Amazon’s largest ever acquisitions.
The robot vacuum maker has seen sales decline and it said it would immediately embark on a restructuring, which will see 350 jobs axed, or 31% of its staff.
The company is also shrinking its office footprint and scaling back spending on research. Its chief executive is also leaving.
In the announcement, the companies said the decision to scrap the deal was mutual and Amazon would pay the previously agreed $94m break-up fee.
Amazon said the outcome was an indication that regulatory decisions to block mergers in the name of increasing competition and protecting consumers from monopolies were backfiring.
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” said David Zapolsky, Amazon senior vice president and general counsel.
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