The planned $3.9 billion takeover of Deliveroo by U.S. meal delivery company DoorDash will be examined under the European Union’s simplified merger procedure, according to Reuters. Documents from the European Commission published on Tuesday confirmed the review process.
DoorDash and Deliveroo reached an agreement in May that values the British food delivery firm at roughly 2.9 billion pounds, or $3.92 billion, per Reuters. Reviews conducted under the EU’s simplified procedure generally indicate that regulators do not expect significant competition issues, making approval likely.
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Deliveroo, which went public in 2021, has struggled to maintain investor confidence in recent years. According to Reuters, the company’s stock has declined sharply since its debut as growth in online food delivery slowed following the COVID-19 pandemic.
The review by the EU adds an important regulatory step in a deal that could reshape the European food delivery market, with DoorDash aiming to strengthen its international footprint through the acquisition.
Source: Reuters