Deliveroo PLC: A New Chapter in the Food Delivery Saga

In a significant development for the food delivery industry, DoorDash, the U.S.-based meal delivery giant, has announced its plans to acquire Deliveroo PLC, a leading player in the sector based in London. This proposed $3.9 billion takeover has caught the attention of the European Union, which has decided to review the deal under its simplified merger procedure. This decision, announced on August 19, 2025, marks a pivotal moment for both companies and the broader market.

The EU’s Simplified Review Process

The European Union’s decision to employ a simplified review process for the DoorDash- Deliveroo merger indicates a streamlined approach, typically reserved for transactions that are unlikely to raise significant competition concerns. This procedure allows for a quicker resolution, often concluding within 25 working days. The EU Commission’s documents, released on Tuesday, confirmed this approach, highlighting the strategic importance of the merger in the competitive landscape of food delivery services.

Market Reactions and Implications

The news has stirred the financial markets, with Deliveroo’s shares closing at 178 GBP on August 17, 2025, just shy of its 52-week high of 179.1 GBP. Despite the positive momentum, the company’s price-to-earnings ratio remains at a staggering -129.181, reflecting ongoing challenges in achieving profitability. The market capitalization stands at 2.65 billion GBP, underscoring the significant value and potential impact of this acquisition.

Insider Movements and Market Interest

In the days leading up to the announcement, there was notable activity from major investors. On August 18, 2025, Norges Bank and Samson Rock Capital LLP disclosed their positions in Deliveroo through Form 8.3 filings, as required by the Takeover Code. These disclosures, indicating ownership of 1% or more of relevant securities, suggest heightened interest and potential strategic positioning ahead of the merger.

Strategic Significance

For DoorDash, acquiring Deliveroo represents an opportunity to expand its footprint in Europe, leveraging Deliveroo’s established presence and expertise in the region. For Deliveroo, the merger offers a chance to bolster its competitive edge and operational capabilities through DoorDash’s resources and technological prowess.

Looking Ahead

As the EU review progresses, stakeholders will be closely watching for any developments that could influence the final outcome of this high-profile merger. The decision will not only shape the future of Deliveroo and DoorDash but also set a precedent for future consolidations in the rapidly evolving food delivery industry.

In conclusion, the proposed acquisition of Deliveroo by DoorDash is a landmark event, poised to redefine the competitive dynamics of the global food delivery market. With the EU’s simplified review process underway, the industry eagerly anticipates the next steps in this transformative journey.