Europe’s antitrust watchdog is set to block Amazon's US$1.7 billion bid to acquire iRobot Corporation (NASDAQ:IRBT), the maker of Roomba robotic vacuums, according to sources familiar with the matter.
Amazon.com Inc (NASDAQ:AMZN, ETR:AMZ) met with competition officials from the European Commission on Thursday, where it was informed that the deal was likely to be rejected.
The formal approval from the commission's top leaders is still pending, but historically, such decisions align with the recommendation of the competition commissioner, Margrethe Vestager.
The final decision is expected before the commission's February 14 deadline.
iRobot's shares plummeted nearly 40% in after-hours trading following reports of the EU's intentions.
Closing at US$23.62 on Thursday, iRobot's stock is below the US$61 per share price agreed upon by Amazon.
The European Commission expressed concerns about the deal in November, citing potential competition restrictions in the robot vacuum cleaner market.
Amazon, which had agreed to acquire iRobot in August 2022, missed a deadline last week for submitting remedies to address the commission's concerns.
While the deal was cleared by U.K. competition regulators in June, the U.S. Federal Trade Commission has been investigating the acquisition.
Amazon, facing increasing antitrust scrutiny, has been accused of maintaining an illegal monopoly, with the FTC suing the company in September.