Amazon has decided not to proceed with its planned acquisition of vacuum-maker iRobot, citing an inability to secure regulatory approval for the deal, CNBC reports.
The decision came after the European Union indicated it would not grant regulatory approval for the acquisition. The European Commission had launched an investigation, expressing concerns that Amazon’s control over the online marketplace could hinder competition in the robot vacuum cleaner market.
The terminated deal, initially valued at around $1.7 billion in 2022, will result in Amazon paying iRobot a $94 million breakup fee. Shares of iRobot fell by 10% following the news.
iRobot announced it will lay off 31% of its employees, about 350 people, and its CEO Colin Angle will step down immediately. The company plans to focus on margin improvements, reduce spending on research and development, and halt work on non-floorcare products.
