A $1.7 billion Amazon-iRobot deal was made 17 months ago. The agreement progressed slowly over the next year and a half. Analysts expected regulatory scrutiny of the retail giant’s purchase of the home robot pioneer, but few expected it to take so long.
The European Commission has until February 14 to decide on the accord. According to a fresh source, the EU regulatory authority will vote against acquisitions due to their alleged anti-competitive nature. Amazon missed the European Commission concessions deadline last week.
The Wall Street Journal reports that Amazon was informed of the Commission’s plans in a recent meeting. The merger has cleared many regulatory bodies, including the U.K.
Amazon has assured authorities that its enormous retail presence will not favor iRobot products over competitors since announcing the transaction.
The lengthy evaluation period challenged iRobot. Amazon lowered its share price from $61 to $51.75 in July. The revelation came as Roomba raised $200 million in debt to keep operations going while the transaction closed. If the transaction goes through, the new parent business will take over that debt.
As part of a reorganization, iRobot eliminated 140 employees by 10% the day the purchase was announced. The business fired 85 more staffers in February. Delays have also hurt iRobot’s stock price. Share prices are below $20, one-third of where they were when the deal was announced.
