Amazon is scrapping its planned takeover of vacuum maker iRobot following opposition from EU competition authorities.
The companies said in a joint statement that they were “disappointed” but there was no clear regulatory path for the purchase of the Roomba maker.
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Amazon iRobot
Amazon’s takeover of vacuum cleaner maker iRobot is set to be blocked by the European Union’s competition watchdog,
It’s a blow to the tech giant, which was previously given the all-clear for the purchase by the UK government’s competition watchdog.
The Competition and Markets Authority (CMA) found that its place in the UK market was “modest” and that it already faced several significant rivals.
Amazon declined to comment.
The online giant moved to buy iRobot, maker of the Roomba cleaner, in August 2022 in a takeover deal set to cost $1.7bn (£1.4bn).
Amazon’s $1.7 billion deal to buy iRobot is running into objections
European Union regulators have sent a statement of objections to Amazon about the company’s proposed $1.7 billion acquisition of Roomba maker iRobot. In a press release, the European Commission says that it “has informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for robot vacuum cleaners
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Amazon can engage with the regulator to address its concerns. The EU has a February 14 deadline to reach a final decision.
Amazon said it would “continue to work through the process with the European Commission and focused on addressing its questions and any identified concerns”.
iRobot shares fell almost 20 per cent
Amazon-iRobot: the EU Antitrust
Amazon’s $1.7 billion acquisition of iRobot is subject to an antitrust investigation by the European Union. iRobot which first introduced its Roomba robot vacuum cleaner in 2002 is of interest to Amazon which is already on the market with its products and which could integrate iRobots with the popular Alexa voice assistant.
The British antitrust recently examined the agreement giving its go-ahead but the European Commission’s investigation risks further postponing the effects of the acquisition. The preliminary investigation will conclude in early July, the Antitrust could carry out a supplementary investigation and ask for another 4 months. Amazon announced the deal in August 2022
Amazon takeover of iRobot faces UK watchdog review
Amazon’s planned takeover of Roomba vacuum cleaner maker iRobot is being reviewed by the UK’s competition watchdog.
The Competition and Markets Authority (CMA) is looking at whether the deal could lead to “a substantial lessening of competition”.
Amazon is seeking to grow its operations for smart home appliances.
Both Amazon and iRobot have both said they are “working co-operatively” with regulators.
Amazon announced it was buying iRobot last year in a $1.7bn (£1.4bn) takeover deal.
Roomba models sell in the UK from £249, with some costing up to £899.Both Amazon and Massachusetts-based iRobot said they were “working co-operatively” with the relevant regulators over the merger.
Currys boss& Amazon
Currys’ chief executive has said Amazon is getting a “free ride” from UK retailers by using the country’s infrastructure while swerving taxes.
Alex Baldock, the boss of the high street electronics retailer told the BBC’s Sunday with Laura Kuenssberg show Amazon “appear[s] to play by different rules than those of us who actually pay some tax”.
The online giant has been accused of reducing its UK tax bills by sticking to a primarily digital footprint although it does pay tax on distribution warehouses.
Amazon’s UK tax bill could rise by £29m next year following the changes to business rates introduced in the autumn statement that will hit those that operate warehouses.
Amazon’s takeover bid on iRobot
Amazon has put $ 1.7 billion on the table to buy the entirety of the shares of iRobot, the American company known worldwide for the Roomba series of robot vacuum cleaners, as reported by the Wall Street Journal . Although the company is the reference brand in the sector, it has probably suffered from the growing competition due to the success of the category and in recent months it has lost profitability closing its balance sheets in deficit.
The stock, which was worth 68 dollars at the beginning of 2022, had dropped to around 35 in mid-July and then climbed back to 50 dollars per share. Amazon offering $ 61 in cash provides a premium of around 20%. The total investment envisaged by Amazon: 1.7 billion, is slightly higher than the 2021 turnover: 1.56 billion. Amazon is also committed to clearing the company’s debt.
The market does not seem to expect a further offer. Amazon is committed to building an ecosystem of home appliances to make Alexa the ‘smart home’ hub competing with Google.
RKW creates 80 new jobs after securing eight-figure investment from HSBC
A company which designs, manufactures and sells domestic appliances for big-name brands is creating dozens of new jobs after securing an eight-figure funding package from HSBC.
RKW, the trading division of Sutton Venture Group, says the investment is being used to created 80 new roles at the business and turn its huge warehouse, based on Stone Business Park, into 24 hour operation
The family-owned company already employs more than 500 staff across three distribution centres, its Stoke-on-Trent headquarters in Fenton, and offices in Hong Kong, India and China.Established in 1989, RKW designs, manufactures and distributes small domestic appliances and housewares for leading brands including Black and Decker, Lavazza, Morphy Richards, Tower, Smeg, Swan, Russell Hobbs and Breville. It supplies leading UK retailers – including Next, Amazon, Tesco, Currys and Argos – from its Staffordshire distribution centre, while international customers are supplied directly from its offices in China.
Amazon is reportedly working on a smart fridge that tracks what’s inside
According to Insider, the organization has been working on a smart fridge that could monitor items and help you order replacements in case you’re running low on something.
The team behind the Amazon Go systems is stated to be heading the charge on the project, which has been in the works for at least two years. The Just Walk Out tech used at Go shops tracks what shoppers put in their carts and automatically charges them when they leave. Members of the Amazon Fresh and Lab126 hardware teams are reportedly involved with the fridge project too.
The fridge would monitor the items inside and keep tabs on your purchasing habits, according to the report. If you run low on something you buy frequently, the fridge would notify you and make it easier to order more from Whole Foods or Amazon Fresh, which could give the company’s grocery division a boost. The fridge could offer recipe suggestions too, which may prove useful if you forget about an item that’s about to expire.
Amazon wouldn’t make the fridges itself, Insider‘s sources said. It’s looking to team up with an appliance manufacturer. There’s a possibility that Alexa voice control could be included. That’s said to not be a major concern, but given Amazon’s propensity for stuffing Alexa into nearly every other type of product, including home robots and its own TVs, it wouldn’t be a surprise if the fridge has voice assistant support.
The company has reportedly spent upwards of $50 million per year on the project so far. Even so, there’s no guarantee that the fridge will come to market as it’s possible Amazon will shelve the plans. If the fridge does come to market, it likely won’t come cheap. An Amazon spokesperson told Engadget the company doesn’t comment “on rumors or speculation.”
The concept isn’t entirely new. In 2016, Samsung revealed a fridge that can help you keep track of what’s inside without having to open the door. You can even order groceries using the built-in touchscreen. Amazon’s fridge would take the idea a little further, though, since it would flag items that you’re about to run out of and help you order more through the company’s own grocery ecosystem.
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