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UK's Deliveroo to be bought by US firm DoorDash in £2.9bn deal

UK's Deliveroo to be bought by US firm DoorDash in £2.9bn deal

Summary

The US company DoorDash is buying the UK's Deliveroo, a food delivery app, for £2.9 billion. The combined company will serve around 50 million customers per month in over 40 different countries.

Key Facts

  • DoorDash, a US-based firm, is buying Deliveroo, a UK-food delivery app, for £2.9 billion.
  • The deal values each Deliveroo share at 180p, a 44% increase from the price before the takeover was announced.
  • However, this price is lower than the initial share price of 390p when Deliveroo first went public on the London Stock Exchange in April 2021.
  • The combined company will operate in over 40 countries and serve approximately 50 million customers each month.
  • For the takeover to proceed, Deliveroo's shareholders must give their approval.
  • Will Shu, Deliveroo's CEO and co-founder, is expected to receive around £172.4 million for his 6.4% stake in the company.
  • Deliveroo was founded in 2013 and currently has over 130,000 delivery riders in nine countries.
  • The proposed takeover has raised issues about the attractiveness of the UK for investment, as several UK-listed firms have left the London Stock Exchange for the US in recent years.
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