(MarketScreener with Reuters) On Tuesday US meal delivery giant DoorDash announced the acquisition of British company Deliveroo for £2.9bn, or approximately $3.85bn. The deal marks a strategic step in DoorDash's ambitions to expand its presence in international markets. The agreement provides for an offer to purchase all of Deliveroo's shares at a price of 180 pence per share. DoorDash said the financial terms of the transaction were final and would not be subject to any review.
Deliveroo, which has had a difficult stockmarket run since its IPO in 2021, said its board of directors had reviewed DoorDash's offer and recommended it to its shareholders.
The acquisition would enable DoorDash to establish itself as a global player in meal delivery, consolidating its position against competitors such as Uber Eats and Just Eat Takeaway. "This potential acquisition would significantly expand DASH's global reach, with virtually no overlap between the two businesses. Furthermore, DASH's market share gains, both in the US and internationally, suggest that a combined strategy could accelerate ROO's growth in its attractive geographic footprint," said Jefferies analyst John Colantuoni.
