iRobot shares collapsed 17 per cent and trading in the stock is temporarily suspended in Europe due to an investigation into the Amazon deal

The European Commission fears that if Amazon buys iRobot, it could lead to a restriction of competition in the market. In this regard, the shares of the robot hoover manufacturer collapsed, and trading was temporarily suspended in Europe.

Here's What We Know

We learnt about Amazon's desire to acquire iRobot last year. The deal was valued at $1.7bn, i.e. $61 per share. In mid-summer 2023, the European Commission launched an investigation into the sale and intends to issue a final ruling no later than 14 February 2024.

The warning from the regulator caused iRobot's shares to fall 17 per cent. An Amazon spokesperson said that the company is willing to work with the Commission to resolve any issues that arise. He added that Amazon's resources will accelerate innovation and lower prices for customers.

In addition to the European Commission, the UK's Competition and Markets Authority, along with the US Federal Trade Commission, is reviewing the deal. The British regulator said a few months ago that Amazon's purchase of iRobot would not reduce competition in the United Kingdom's robot hoover market.

Source: CNBC