DoorDash's Acquisition of Deliveroo

On 2 October, US food delivery company DoorDash completed its £2.9 billion takeover of Deliveroo. The deal ended one of London's best-known tech listings, four and a half years after Deliveroo floated on the London Stock Exchange.

Takeover talks became public in April, and the two sides agreed a recommended deal on 6 May. DoorDash offered 180p per share in cash, a 44% premium to Deliveroo's share price before the talks were announced. That was still well below Deliveroo's 390p float price in April 2021. Co-founder Will Shu, who held around 6.4% of the company, stood to receive around £172 million.

DoorDash said its offer was final and would not be increased unless a rival bidder came forward. Under the Takeover Code, a bidder is held to that kind of statement, so shareholders knew there was no point waiting for a better price. The deal was carried out through a scheme of arrangement under Part 26 of the Companies Act 2006. After shareholders voted in favour, the High Court sanctioned the scheme, with Sir Alastair Norris describing it as entirely straightforward, and it took effect on 2 October.

The combined group operates in more than 40 countries with around 50 million monthly users. The deal also added to concerns about the number of UK companies being bought by US firms and leaving the London market.

A final offer and a scheme of arrangement gave the deal a clear path to completion. It is also another example of lower valuations in London attracting overseas buyers.