Amazon has abandoned its decision to acquire robot vacuum cleaner manufacturer iRobot, which was opposed by the European Union.
In a statement from Amazon and iRobot, it was reported that the merger plan was terminated in the face of opposition from EU antitrust regulators.
Amazon reported that there was no way for its proposed $ 1.4 billion offer to acquire iRobot to receive legal approval in the European Union.
WILL REDUCE WORKFORCE BY 30 PERCENT
iRobot announced a major restructuring plan to reduce costs. The company announced that it would lay off about 30 percent of its workforce and Colin Angle resigned as CEO.
SHARES FALL SHARPLY
After the announcement of the decision, iRobot shares fell 15 percent in pre-market trading.
The EU argued that Amazon's acquisition of iRobot would harm competition.
The e-commerce giant announced its plan to acquire iRobot in August 2022, which it wanted to add to its smart device portfolio.
