iRobot’s stock surged by 39% following news of EU approval for its Amazon deal.

ByYasmeeta Oon

Nov 27, 2023

iRobot, the manufacturer of Roomba vacuums, saw its stock price rise by approximately 39% on Friday in response to news that the European Union is poised to give its approval for Amazon’s acquisition of the company, valued at $1.7 billion.

According to reports from Reuters on Thursday morning, the deal is expected to receive “unconditional EU antitrust approval,” as confirmed by three sources familiar with the situation. The European Commission is set to make its decision on the acquisition by February 14.

Meanwhile, the U.S. Federal Trade Commission is still reviewing the deal, while the U.K.’s Competition and Markets Authority concluded in June that the acquisition would not lead to a “substantial lessening of competition” in the U.K.

Amazon’s stock remained stable throughout this development.

Amazon initially announced its intention to purchase iRobot back in August 2022, offering $61 per share in an all-cash transaction. This acquisition ranks as Amazon’s fourth-largest, following its notable acquisitions of Whole Foods for $13.7 billion in 2017, MGM for $8.45 billion in 2021, and boutique primary-care provider One Medical for $3.9 billion in July of the previous year.

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.