Shares of iRobot, the maker of Roomba vacuums, surged by about 39% as the European Union is set to approve Amazon’s $1.7 billion acquisition of the company.
Approval from EU Expected
The shares of iRobot, known for its Roomba vacuums, soared nearly 39% following reports that the European Union is likely to grant approval for Amazon’s acquisition of the company. The European Commission is anticipated to announce its ruling on the deal by Feb. 14, as per sources familiar with the situation.
Amazon had revealed its plans to purchase iRobot in August 2022 at a price of $61 per share in a complete cash transaction. This deal is poised to become Amazon’s fourth-largest acquisition, after its notable purchases of Whole Foods, MGM, and One Medical.
Regulatory Review Status
While the EU is on the brink of approving the acquisition, the deal is still undergoing scrutiny by the U.S. Federal Trade Commission. Notably, the U.K.’s Competition and Markets Authority had stated earlier that the deal would not significantly diminish competition in the U.K.