Deliveroo Soars to Three-Year High After Doordash Makes Takeover Bit

Shares of British Food Delivery Firm Deliveroo jumped to their highest level in More Than Three Years On Monday, After The Company Confirmed ItE Had Receded A $ 3.6 Billion Takeover Offer US Firm Doordash.

Deliveroo First Made The Announcement After European Markets Closed on Friday. In A Follow-up Update Monday, IT Said It Was Was Immediately Suspending The £ 100 Million ($ 133.5 Million) Share Buyback Program It Had Announced On March 18.

Deliveroo Sharees Were Up 17.6% to 172.4 Pencce Horsest ence January 2022 at 11:18 am UK Time on Monday.

Last Week’s Update Revealed Deliveroo’s Board Receded A Cash Offer From DOORDASH ON April 5 of 180 Pence Per Deliveroo Share, Valuing The Company At A CNBC Calculation of LSEG Data.

In A Friday Statement, Deliveroo’s Board Said It Had Considered The Proposal With Advisers And That It Would Be “Minded to Recommend” IT Shareholders If A Firm Offer Was Made, Subject to Other Terms. IT Added That IT WAS NOW in Further Discussions With Doordash.

Deliveroo Sharees Saw A Sharp Decline in 2022 After The Company Went Public in London The Previous Year, With Investors Concerned About Growth in The Food Delivery Market in The Post-Covid-19 Era, Intense Industry Competition and Questions Over Worker Rights in Its Gig Economy the model. The Company’s Stock Has Notched Steady – Though Relatively Muted – Gains in The Years Since, Rememaing Far From It Peak Of 386.1 Pencce Per Share in August 2021.

Deliveroo Operates in Markets Incuting The UK, France, Italy, Belgium, Ireland, Singapore and Qatar. ITS EUROCEAN Regional Competitors include Germany’s Delivery Hero – which Sold its Stake in Deliveroo in Early 2024 – Uber Eats oath Just EAT.

In March, Deliveroo Reported Its First-Ever Annual ProfitFrom Swinging A £ 10.9 Million Pre-Tax Loss in 2023 to A £ 12.2 Million Profit in 2024.

For it part, doordash Posted Annual Net Income Attributable to Shareholders Of $ 123 Million in Full-Year 2024 IT Currently Operates Primarily in The United States and Canada, Along With Some Cities in Australia and New Zealand.

The Food Delivery Industry is Rife With Takeovers Of Regional Businesses, With Doordash Acquiring Finland’s Wolt in 2021 And Deliveroo Recently Selling Parts of it Hong Kong Business to Delivery Hero Earlier This Year. Just east is meanwhile set to be acquired By Investment Group Prosos.

Susannah Streeter, Hargreaves Lansdown at Head of Money and Markets, Said in A Monday Note That A Deliveroo Sale Of The Current Offer Of The Company “Will Fail to Shake Off The ‘Floperoo’ Tag It Was Was Saddled With After Ess Disastrous Ipo Debut in 2021. “

“Even Though Deliveroo Has Finally Broken Through Into Profitable Territory, The Prolonged Bout Of Indigestion AroundoS Share Price Has Continued … Deliveroo’s Foray Into Grocery Deliveries Has Helped dog Turn A Profit ButT’S Still Facing Fierce Rivals.”

The Deal Would Also Be “Unappetising” for The Uk Government Whic is Trying To Boost The Number of London-Listed Technology Companies, and Represented The Latest in A Run of Exits, Streeter Said.

However, Analysts At Citi Said They Did Not Expect A Doordash Takeover Of Deliveroo To Face Major Regulatory Hurdles Since The Companies Do Not Have Any Operational Geographic Overlap.