Amazon, iRobot Dismiss Merger Amid Opposition From EU Regulators

Amazon and iRobot have mutually decided to call off the supposed merger due to the opposition from EU antitrust regulators.

Both companies acknowledged that the proposed acquisition has "no path to regulatory approval" in the EU.

Amazon, iRobot Both Disappointed at Merger End

In a press release, both companies expressed their disappointment at the end game of the planned merger. Moreover, Amazon SVP and general counsel, David Zapolsky stated that the merger could have helped iRobot compete in a global marketplace.

"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.

Zapolsky also claimed that the disproportionate regulatory hurdles will only discourage entrepreneurs from seeing acquisition as a sign of growth. Meanwhile, iRobot announced that it will be focusing on building more home innovations even without Amazon.

iRobot Employees Face Restructuring After Cancelled Merger

Following the mutual termination, iRobot announced that it will undergo an operational restructuring plan that will reposition the company with the right stability to be profitable in the future.

Along with it, CEO, and chairman of the board of directors, Colin Angle has stepped down from his post, effective immediately. In addition, about 31% or 350 employees will be laid off.

"Though decisions that impact our people are difficult, we must move forward with a more sustainable business model and a renewed focus on profitability," chairman of the board, Andrew Miller said.

Both iRobot and Amazon have signed the termination agreement, resolving all the transactions. This includes Amazon paying iRobot the agreed termination fee.