In a landmark move signaling continued U.S. interest in UK-listed firms, DoorDash Inc. today announced it has agreed to acquire Deliveroo PLC in a £2.9 billion ($3.9 billion) transaction, marking a significant step in the food delivery industry's global expansion.

Under the terms of the DoorDash £2.9B Deliveroo UK Bid, the U.S.-based delivery giant will offer 180 pence per Deliveroo share, representing a 44% premium on Deliveroo’s April 4 closing share price of 125 pence on the FTSE 250 Index. The deal will be financed entirely through DoorDash’s cash reserves.

“This strategic acquisition will significantly expand our global footprint,” said Tony Xu, CEO and Co-founder of DoorDash. “Together, we will operate in over 40 countries, reaching more than 1 billion people, and enabling more local businesses to thrive with best-in-class logistics and technology.”

Legal and financial advisors have been appointed for the high-profile transaction. Latham & Watkins LLP is leading legal counsel for DoorDash, with corporate partners Ed Barnett and Doug Abernethy at the helm, supported by associate Harriet Stephenson. Financial advisory services are being provided by JPMorgan, and Addleshaw Goddard LLP is also advising DoorDash.

On the Deliveroo side, White & Case LLP is acting as legal counsel, led by partners Guy Potel and Di Yu. Goldman Sachs International and Allen & Company LLC are advising Deliveroo, with Barclays serving as corporate broker.

The transaction will proceed via a court-sanctioned scheme of arrangement under the UK Companies Act 2006, requiring approval from 75% of Deliveroo shareholders. The shareholder meetings are scheduled for May 20, with deal completion anticipated in the final quarter of 2025.

Deliveroo's largest shareholders, including co-founder Will Shu, who collectively hold 15.4% of the company's shares, have irrevocably committed to support the deal. Deliveroo’s board has also unanimously recommended shareholder approval.

The acquisition is subject to regulatory approvals, including antitrust clearance from both the EU and UK, as well as foreign direct investment approval in Italy and compliance with the EU foreign subsidiaries regulation.

Once completed, DoorDash plans to delist Deliveroo from the London Stock Exchange (LSE) and operate it as a private company. This move aligns with a broader trend of UK companies exiting the LSE, following the examples of IBM and ARM Holdings in recent years.

Deliveroo currently operates in nine countries, deploying over 130,000 riders and servicing approximately 154,000 restaurants and grocery partners. DoorDash, which already partners with over 500,000 businesses, serves around 42 million monthly customers across 30+ countries.

A 2024 report by IbisWorld projects continued strong growth in the online food delivery sector, with an expected 15.2% compound annual growth rate over the next five years—making the DoorDash £2.9B Deliveroo UK Bid a timely and strategic expansion.