Amazon and iRobot scrap their acquisition plan, see no path to approval in EU

Amazon.com Inc.
AMZN,
+0.87%
and Roomba parent iRobot Corp.
IRBT,
-3.36%
said Monday they are terminating their planned acquisition agreement because they believe there’s no path to regulatory approval in the European Union. “We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon senior vice president and general counsel. This outcome “will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,’ he added. The Wall Street Journal reported earlier in January that Amazon representatives met with officials from the European Commission to discuss the deal and were told that it would likely be rejected. The companies announced the deal in August with Amazon planning to pay $61 a share in cash for each iRobot share owned in a deal that values the maker of robotic cleaning products at about $1.7 billion, including debt. iRobot’s stock tumbled 21% early Monday, and is down 56% in the year to date, while the S&P 500
SPX,
-0.07%
has gained 2.5%.