Market Chatter: US Legislators Seek Probe into Vacuum Maker IRobot Bankruptcy, China Control

MT Newswires Live
01/09

Two U.S. lawmakers called on Treasury Secretary Scott Bessent to review a proposal to transfer the control of vacuum maker iRobot to main Chinese supplier Shenzhen PICEA Robotics as part of bankruptcy proceedings, Bloomberg reported Thursday, citing a letter.

The transaction "raises substantial national security and data privacy concerns" that need scrutiny by the Committee on Foreign Investment in the U.S., the report said, citing a letter written by Representatives Ritchie Torres and Zach Nunn.

The transaction also runs the risk of U.S. technology being controlled by a "foreign adversary" as iRobot's Roomba vacuums are installed with mapping technology, cameras, and sensors that collect floor plans from "tens of millions of American homes," Bloomberg said, citing Torres and Nunn.

IRobot filed for Chapter 11 bankruptcy, proposing that PICEA take 100% of the company, it said in a Dec. 14 press release.

Shenzhen PICEA Robotics subsidiary Santrum Hong Kong acquired $191 million in iRobot's outstanding debt in principal and interest from a $200 million loan from Carlyle, according to a previous Bloomberg report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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