Amazon’s
penchant for vacuuming up smaller companies looks set to continue—to the delight of
iRobot
investors.
The e-commerce and tech company’s $1.4 billion deal to buy smart vacuum cleaner company
iRobot
(ticker: IRBT) is set to win full EU antitrust approval, Reuters reported.
Shares of the Roomba maker jumped 30% to $38.63 in premarket trading Friday following the report.
Amazon
announced the acquisition in August 2022.
The initial agreement worked out to about $61 a share but the terms were revised in July to $51.75 a share after iRobot’s net debt increased.
Even with the 30% premarket jump, iRobot stock still sits considerably below that price, suggesting more gains could be ahead if the acquisition is cleared.
The European Commission opened an antitrust investigation into the deal in July. The commission said it was concerned that the acquisition would allow
Amazon
to restrict competition in the market for robot vacuum cleaners, and strengthen its position in the market for online marketplace providers.
It warned that Amazon could have the power and incentive to favor iRobot products to its rivals’ in Amazon’s marketplace.
But the EU could be about to follow the U.K.’s antitrust regulator, which cleared the deal in June concluding that it would not impact competition.
Amazon stock edged 0.1% higher ahead of the open.
Write to Callum Keown at [email protected]
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