Shares of iRobot (NASDAQ: IRBT) fell 19.8% unhurried Wednesday after Politico reported Amazon.com (NASDAQ: AMZN) will not supply concessions to European Union (E.U.) antitrust regulators because it works to certain its impending acquisition of the dwelling robotics specialist.
Amazon is not for all time backing down from antitrust regulators
Citing two americans conversant in the sphere unhurried this afternoon, Politico says Amazon and iRobot have till the cease of the day as of late to repeat affords to the European Commission (EC) to earn adjustments to Amazon’s enterprise in the E.U. market. Amazon is it appears to be opting to not cave to that force.
Recall in November, the EC issued a “assertion of objections” to Amazon’s deal to procure iRobot — handiest identified for its Roomba line of robotic vacuum cleaners (RVCs) — detailing its look that the aquire would possibly maybe perhaps well restrict opponents in the marketplace for RVCs.
Did Amazon staunch call the EC’s bluff?
Because it stands, the EC has enviornment a time limit of Feb. 14, 2024, to approve or enlighten the acquisition. By selecting not to give any proposed adjustments to its enterprise in Europe, nonetheless, Amazon severely elevated the risk that regulators would possibly maybe perhaps well think to strike down the deal.
On the identical time, nonetheless, Reuters previously reported that EC attorneys had been on the muse adversarial to sending the assertion of objections to Amazon in the foremost role, arguing the acquisition posed no aggressive risk and need to be cleared on an unconditional basis. With that in mind, maybe here is more a case of Amazon calling regulators’ bluffs and assuming the deal will earn cleared regardless.
If that occurs — and with iRobot stock now procuring and selling at a bigger than 40% slash worth to the agreed acquisition mark — this would possibly occasionally maybe perhaps additionally very effectively be an titillating bit of merger arbitrage for merchants prepared to earn a speculative wager the deal goes through.
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John Mackey, feeble CEO of Complete Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of administrators. Steve Symington has no role in any of the shares talked about. The Motley Fool has positions in and recommends Amazon and iRobot. The Motley Fool has a disclosure policy.
Why iRobot Stock Plunged On the present time became to begin with revealed by The Motley Fool