Deliveroo Shares Surge Amidst DoorDash Takeover Proposal

On Monday, April 28, 2025, Deliveroo PLC experienced a significant surge in its share price following a takeover proposal from DoorDash Inc., a leading American food delivery service. The proposal, valued at approximately $3.6 billion (or £2.7 billion), has sparked considerable interest among investors and market analysts.

Key Details of the Proposal

  • Offer Details: DoorDash has made an indicative offer of £1.80 per share for Deliveroo, which has led to a substantial increase in Deliveroo’s share price. The shares jumped by over 17% to 18% on the London Stock Exchange, marking the most significant rise since 2021.
  • Market Reaction: The news has positively impacted the FTSE 100 index, with stocks opening higher as investors react to the potential acquisition.
  • Founder’s Potential Gain: Deliveroo’s founder and CEO, Will Shu, could net approximately £172 million if the deal proceeds, despite the company’s shares trading well below their 2021 flotation price.

Company Background

Deliveroo PLC, headquartered in London, operates within the Consumer Discretionary sector. The company provides an online platform for food delivery, partnering with restaurants, grocery stores, and other food suppliers to serve customers globally. As of April 24, 2025, Deliveroo’s share price closed at 146.6 GBP, with a market capitalization of 2.1 billion GBP. The company has experienced significant volatility, with a 52-week high of 166.2 GBP and a low of 111.6 GBP.

Recent Developments

  • Share Buyback Suspension: In response to the takeover proposal, Deliveroo has suspended its share buyback program. This decision aligns with standard practices during potential acquisition discussions.
  • Previous Discussions: Reports from last year indicated prior discussions between Deliveroo and DoorDash regarding a potential acquisition. However, the talks were halted due to disagreements over valuation.

Market Implications

The proposed acquisition by DoorDash signifies a strategic move towards global expansion for the US-based company. This consolidation within the food delivery sector highlights the competitive landscape and the ongoing efforts by major players to strengthen their market positions.

As the situation develops, stakeholders and market observers will closely monitor the potential outcomes of this significant takeover bid.