UK food delivery company Deliveroo has agreed a £2.9billion takeover by US rival DoorDash.
The acquisition will help DoorDash, which is based in San Francisco, grow its market share in Europe, competing against Just Eat and Uber Eats. Britain and Ireland are Deliveroo’s largest market, accounting for 62% of the value of its orders in its latest quarter.
DoorDash has made a final offer of 180 pence per share – a 44% premium on Deliveroo’s closing price on April 4th. However, it is much lower than the 390 pence that shares commanded in 2021, a time when meal delivery services were boosted by the pandemic.
Deliveroo and DoorDash combined will have a presence across 40 countries, with annual orders worth around £10bn.
According to news agency Reuters, the deal is not expected to face regulatory hurdles as DoorDash has virtually no presence in Deliveroo’s 10 markets.
Will Shu, who co-founded Deliveroo in 2013 and leads the company, is set to receive over £170 million pounds for his 6.4% stake.
