Roomba robotic vacuum cleaners made by iRobot are displayed on a shelf at a Target store in San Rafael, California, on August 05, 2022.
Justin Sullivan | Getty Images
Shares of iRobot fell more than 33% in extended trading Thursday after a report said the European Union's antitrust watchdog intends to block Amazon's planned takeover of the Roomba vacuum cleaner maker.
The Wall Street Journal It stated that the European Commission met with Amazon representatives on Thursday to discuss the deal, and was told that the acquisition would likely be rejected, citing people familiar with the matter.
Amazon declined to comment. A representative of the European Commission did not immediately respond to a request for comment.
Amazon stock fell slightly in extended trading.
Amazon Announce It will acquire iRobot in August 2022 for $61 per share in an all-cash deal that values the smart vacuum maker at $1.7 billion.
The European Commission, the EU's top antitrust enforcer, opened an in-depth investigation into the purchase last July. The group warned that the planned acquisition raises competition concerns, saying it found that Amazon could hinder iRobot's rivals from competing in its online marketplace. The European Commission said Amazon could delete or reduce the appearance of competitors' products in search results or in other areas.
The European Commission is expected to decide on the deal by February 14. Earlier this month, Politico reported that Amazon does not plan to make concessions to resolve the group's concerns about the acquisition.
The deal is still under review by the US Federal Trade Commission. The UK Competition and Markets Authority said in June that the deal would not “significantly reduce competition” in the UK.
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