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Merger between Amazon and Roomba maker iRobot abandoned over competition concerns | Business News<\/p>\n
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Plans by Amazon and vacuum cleaner maker iRobot to merge have been abandoned following concerns that the move would harm competition.<\/p>\n
The $1.4bn (\u00a31.1bn) deal, which was first announced in August 2022, had previously been approved by UK regulators.<\/p>\n
But in November the European Commission expressed concerns the online retailer might give iRobot’s products preferential treatment on its website – ahead of rival vacuum companies – if the merger went ahead.<\/p>\n
Amazon<\/strong> confirmed on Monday that the deal had now collapsed after it failed to find a way forward with EU officials during talks.<\/p>\n The merger had also been facing scrutiny from regulators in the US. A source told Reuters news agency following Monday’s announcement that the Federal Trade Commission had been “poised” to reject the deal.<\/p>\n Amazon’s senior vice president David Zapolsky said: “We’re disappointed that Amazon’s acquisition of iRobot could not proceed.<\/p>\n “We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products.”<\/p>\n He added: “This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable.”<\/p>\n Read more from business:<\/strong> Amazon, which already owns “smart” products such as Alexa and Ring, had been looking to expand its range of home tech devices.<\/p>\n The collapse of the deal is a major setback for iRobot, which is best known for its Roomba range of circular vacuum cleaners.<\/p>\n It announced a restructuring plan to reduce costs, including 350 job cuts, while the firm’s founder Colin Angle also said he was stepping down as its chief executive.<\/p>\n Mr Angle said he and the board “mutually decided that iRobot will be better served by a new leader with turnaround experience.”<\/p>\n However, Amazon will still pay the firm a previously-agreed $94m (\u00a374m) termination fee.<\/p>\n In its decision to approve the deal last June, the UK’s Competition and Markets Authority<\/strong> said the market for robot vacuum cleaners in Britain was “small,” with demand “significantly” below the levels seen in parts of mainland Europe and the US.<\/p>\n The regulator said that while Amazon did have the ability to harm iRobot’s rivals via its website, it did not have the incentive to do so.<\/p>\n<\/p><\/div>\n \u0627\u0644\u0645\u0635\u062f\u0631<\/a>
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