DoorDash to Acquire Deliveroo in £2.9B Global Expansion Deal

Post by: Layla Badr

Photo: Reuters

DoorDash, a large food delivery company from the United States, has decided to buy Deliveroo, a food delivery company based in the United Kingdom. The deal is worth around £2.9 billion (which is about $3.9 billion). With this deal, DoorDash wants to grow its business in more countries outside the U.S.

Details of the Offer

DoorDash is offering 180 pence in cash for each Deliveroo share. This price is 29% higher than what Deliveroo’s shares were worth on April 24. DoorDash first made this offer on April 25, and now it has been confirmed. The deal will only go through if both Deliveroo’s shareholders and government regulators give their approval.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel  

What the Deal Means

DoorDash already runs a large part of the food delivery business in the United States—about two-thirds of it. If this deal is approved, DoorDash will be working in over 40 countries. Together, DoorDash and Deliveroo handled food orders worth about $90 billion last year, and they serve around 50 million active users each month.

Share Market Reaction

Deliveroo’s stock closed at 172.10 pence on Friday. (Markets were closed on Monday due to a holiday.) So far this year, Deliveroo’s stock is up 21%. DoorDash shares also rose slightly on Monday, ending the day at $205.40, and have gone up 22% this year.

Final Offer and Support

DoorDash has said this is its final offer and it won’t raise the price—unless another company also tries to buy Deliveroo. Deliveroo’s top leaders, including its CEO Will Shu, have agreed to sell their shares to DoorDash. So far, DoorDash has received support from investors who own 15.4% of Deliveroo’s shares. For the deal to be completed, investors owning 75% of the shares need to agree.

Why This Is Happening

Food delivery companies have been merging in recent years. This is mostly because business grew fast during the COVID-19 pandemic, but then slowed down. To survive and grow, many companies are joining forces. In a similar move, a company called Prosus NV decided to buy Just Eat Takeaway.com earlier this year.

Deliveroo has had some struggles. In March, the company shared earnings that were much lower than expected, which made its stock drop. Deliveroo also pulled out of the Hong Kong market because of poor sales and strong competition.

This new deal shows how the food delivery business is changing, with larger companies trying to grow around the world to stay ahead.

#trending #latest #DoorDash #Deliveroo #FoodDeliveryDeal #BusinessNews #GlobalExpansion #MergersAndAcquisitions #TechNews #UKBusiness #USBusiness #StartupNews #FoodTech #MarketUpdate #headlines #topstories #globalUpdate #dxbnewsnetwork #dxbnews #dxbdnn #dxbnewsnetworkdnn #bestnewschanneldubai #bestnewschannelUAE #bestnewschannelabudhabi #bestnewschannelajman #bestnewschannelofdubai #popularnewschanneldubai