Deliveroo's board reviewed the offer of 180 pence per share and is likely to recommend it to shareholders, pending agreement on the other terms. DoorDash must make a firm offer by May 23, but has not yet responded to requests for comment. JPMorgan is advising DoorDash on the deal.
Deliveroo’s shares have declined by nearly 50% since their 2021 debut, as demand for online food delivery slowed after the pandemic and investors sought more profitable companies. In March, Deliveroo exited Hong Kong, selling assets to Delivery Hero's foodpanda.
The deal is expected to face no regulatory challenges, as it would give DoorDash access to 10 new markets where it currently has no presence, complementing its existing footprint. However, the source indicated that other competitors might face antitrust issues.
This acquisition would further solidify DoorDash's presence in Europe, following its 2021 purchase of Finnish rival Wolt Enterprises for about $8 billion in an all-stock deal.
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