iRobot’s Stock Surges 39% Amid News of Amazon Deal Approval by EU

iRobot, known for its Roomba vacuums, witnessed a 39% surge in its shares today following reports of the EU’s readiness to endorse Amazon’s $1.7 billion acquisition of the company.

According to Reuters, insiders familiar with the matter indicated that the EU is anticipated to grant “unconditional EU antitrust approval” for the acquisition.

The European Commission is slated to deliver its decision on the deal by February 14. Notably, there has been no immediate response from the EU regarding this matter.

While the EU seems inclined to approve the deal, the acquisition remains under scrutiny by the U.S. Federal Trade Commission.

Earlier in June, the U.K.’s Competition and Markets Authority had concluded that the acquisition wouldn’t significantly diminish competition within the U.K.

Amazon’s announcement in August 2022 regarding its proposed acquisition of iRobot, valued at $61 per share in an all-cash transaction, triggered market attention.

The e-commerce giant’s stock maintained stability, showing no significant change amidst these developments.

This impending acquisition marks Amazon’s fourth-largest deal, trailing behind significant acquisitions such as its $13.7 billion purchase of Whole Foods in 2017, the $8.45 billion acquisition of film studio MGM in 2021, and the $3.9 billion buyout of healthcare provider One Medical, declared last July.