EU approves Doordash’s Deliveroo takeover

The European Union Commission has approved DoorDash’s acquisition of Deliveroo following a review of the move.

Earlier this year, Deliveroo announced it had agreed to a £2.9bn takeover deal from the US delivery platform rival.

The delivery giants said the deal will help improve Deliveroo’s market share while the “complementary geographic regions” will see Doordash enter nine new countries for the first time, including the UK.

An offer of 180p per share – which marks a 44% increase on the UK company’s share price from the point when takeover talks were made public – was recommended by Deliveroo’s board to shareholders at the time.

In June, the majority of scheme shareholders voted in favour of the move. 

Doordash currently operates in over 30 countries and partners with over 500,000 local businesses on its marketplaces and serves over 42 million monthly active users.

The new combined company will operate in over 40 countries with a combined population exceeding one billion people with annual orders of over £10bn.

In a statement this week, Deliveroo said: “Deliveroo and DoorDash are pleased to announce that the EU Antitrust Condition, the Italian FDI Condition and the EU FSR Condition have now been satisfied. 

“Furthermore, as at the date of this announcement and in accordance with condition 3(b)(i), the CMA’s position as most recently communicated to the parties is that it has no further questions in respect of the acquisition; and the CMA has not requested submission of a merger notice or given notice to either party that it is commencing a Phase I investigation and as such the UK antitrust condition is expected to be satisfied at the sanction hearing.”