British meal supply firm Deliveroo mentioned on Friday it obtained a proposal from US peer DoorDash on April 5 to purchase all of its shares for two.7 billion kilos ($3.60 billion).
Deliveroo introduced that its board has reviewed DoorDash’s proposal and would possible advocate it to shareholders, contingent upon agreeing on the opposite phrases of the supply.
DoorDash might want to make a agency supply by Could 23. The corporate didn’t instantly reply to a Reuters request for remark.
JPMorgan is advising Doordash, based on a supply acquainted with the matter. The present supply marks the primary formal method because the final report in the summertime, the supply added.
Deliveroo’s shares have weakened almost 50% since their 2021 debut as demand for on-line meals supply stagnated after the pandemic and traders shifted towards extra worthwhile corporations.
In March, Deliveroo introduced its exit from Hong Kong, promoting some belongings to Supply Hero’s foodpanda. The Hong Kong operations have been loss-making and represented about 5% of the corporate’s total transactions.
The deal is predicted to face no regulatory hurdles, because it gives DoorDash entry to 10 new markets the place it at the moment has no presence, making a extremely complementary footprint – different rivals may encounter extra antitrust points, the supply mentioned.
Final yr, Reuters reported DoorDash had proven curiosity in a takeover of Deliveroo, however a supply mentioned talks ended after disagreements on valuation.
A deal between the 2 corporations would assist DoorDash solidify its footprint in Europe, after the meal supply group’s 2021 buy of Finland-based rival Wolt Enterprises in an all-stock deal valued at about $8 billion.
