Deliveroo shares soar 17% after DoorDash makes takeover offer

ISTANBUL

Shares of UK-based food delivery firm Deliveroo climbed to their highest level in three years Monday after it confirmed a $3.6 billion takeover offer from US counterpart DoorDash.

Deliveroo shares were up 17.19%, their highest since January 2022, to £171.8 ($229.25) as of 1300GMT on Monday.

Deliveroo initially made the announcement on Friday following the end of European trading. It said in a follow-up report on Monday that it was immediately halting the share buyback program it had announced on March 18 for £100 million, according to CNBC.

Deliveroo said in a statement on Friday that it had discussed the idea with advisors and that, if a concrete offer was made, subject to certain conditions, it would be "minded to recommend" it to shareholders. It also said it was having more conversations with DoorDash.

Deliveroo's shares fell sharply in 2022 after the firm went public in London the year before, with investors worried about the meal delivery sector in the post-COVID-19 era, fierce industry competition, and concerns about workers’ rights in its gig economy model.

Since then, the company's stock has steadily increased, albeit somewhat subtly, but still far from its August 2021 peak of £386.1 per share.

Deliveroo operates in various countries, including the UK, France, Italy, Belgium, Ireland, Singapore and Qatar.