Top News

DoorDoor's $3.9 billion deal to acquire UK food delivery company Deliveroo will be reviewed in the European Union under the bloc's simplified merger procedure, according to a Reuters report on Tuesday.

The move could speed up approvals for one of the biggest cross-border deals in the space, the report said, citing EU Commission documents.

DoorDash agreed to acquire London Stock Exchange-listed Deliveroo in an all-cash deal last month. The agreement would give the American food delivery giant a sizable foothold in the European market, bolstering its coverage, after it took over Finnish delivery platform Wolt in 2022.

The review under the simplified procedure usually means that the EU regulator does not see any competition concerns and that approval is probable.

The deal was formalized amid weakness in Deliveroo's business. Its stock has dropped by about 50% since its 2021 listing, as the surge in online food delivery demand faded post-pandemic. Deliveroo also withdrew plans for listing its shares in Hong Kong.

Meanwhile, DoorDash's shares have gained about 6.5% since the deal was announced on July 1.

DoorDash’s quarterly results, released earlier this month, beat market expectations, and it issued an upbeat forecast for the current quarter.

DASH stock is up over 50% year-to-date. On Stocktwits, the retail sentiment was 'neutral' as of early Tuesday.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<