UK’s Deliveroo suspends share buyback following €3.1B DoorDash takeover proposal

UK-based Deliveroo, a food delivery giant, has suspended its £100M (approximately €117.5M) share buyback program after confirming it had received a $3.6B (approximately €3.1B) takeover proposal from US delivery giant DoorDash.

The UK food delivery firm said it halted repurchases with immediate effect as talks with DoorDash advance.

Deliveroo announced it received the non-binding approach on April 5 and said it would likely recommend the offer — listed at 180 pence per share if final terms are agreed.

The offer represents a 22.8 per cent premium to Deliveroo’s Friday close and sent shares surging over 16 per cent to 170.5 pence early Monday, reports Reuters.

“Having carefully considered the Possible Offer with its advisers, the Board of Deliveroo has indicated to DoorDash that, should a firm offer be made on the financial terms set out above, it would be minded to recommend such an offer to Deliveroo shareholders, subject to the agreement of the other terms of the offer,” says the company.

Unlikely to face regulatory issues

Deliveroo‘s shares have dropped almost 50 per cent since they launched in 2021.

This is due to a slowdown in demand for online food delivery after the pandemic, as investors are seeking more profitable companies, adds Reuters report.

According to Reuters, the deal is unlikely to face any regulatory issues because it lets DoorDash enter 10 new markets where it doesn’t currently operate. This creates a complementary presence.

However, other competitors may face more antitrust problems, according to a source who spoke to Reuters on Friday.

Under the U.K. Takeover Code, DoorDash now has until 5 p.m. London time on May 23, 2025, to either announce a firm intention to make an offer or withdraw.