Deliveroo, a delivery platform based in the United Kingdom, announced on Friday that DoorDash Inc. had submitted a bid to acquire it. This would be the latest international expansion for DoorDash and further industry consolidation.
According to Deliveroo, DoorDash (DASH) expressed interest in paying cash to purchase the business at GBP1.80 per share, or $2.40, after receiving the proposal on April 5. The Wall Street Journal reported that Deliveroo was valued at $3.6 billion in the offer.
DoorDash chose not to respond. The stock has up over 42% over the last 12 months and ended Friday’s trading session up 0.3%.
It stated that its board has told 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.” Deliveroo (UK:ROO) (DROOF). The board of Deliveroo has agreed to discuss the possible deal with DoorDash, it claimed, and has given the food delivery service “access to due diligence.”
Deliveroo stated that there was no assurance of an offer. DoorDash has until May 23 at 5 p.m. London time to submit an offer. According to the statement, Deliveroo made the disclosure in response to “recent press speculation.”
According to a Reuters story from last year, DoorDash and Deliveroo discussed the potential of acquiring the business. But according to the site, negotiations broke down due to a “disagreement on valuation.”
In recent years, DoorDash has made an effort to increase its international presence and diversify its offerings beyond meal delivery. Its most recent annual report states that its marketplaces operate in over 30 nations.
DoorDash put out the idea as many customers are reconsidering their restaurant spending because to rising costs and concerns about a faltering economy. Any agreement would also be the most recent collaboration in the cutthroat, frequently discount-focused world of meal delivery apps.
In 2022, DoorDash paid over $8 billion to acquire Finnish delivery service Wolt. It acquired Caviar, a meal delivery service that specializes in upscale cuisine, in 2019.
In other recent years, Just Eat Takeaway purchased Grubhub and subsequently sold it for a significantly lower price, and Uber Technologies Inc. (UBER) purchased Postmates.
