DoorDash (DASH) has agreed to buy Deliveroo (GB:ROO) for about £2.9 billion ($3.9 billion). On Tuesday, the European Commission said it will review the deal under its simplified merger procedure. That is a faster approval track that the EU uses when it believes a deal is unlikely to hurt competition in the market.
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If regulators had serious concerns, they would open a longer and more detailed review. That process can take months and often creates uncertainty for both companies. By choosing the simplified path, Brussels is signaling that it does not expect the takeover to create major problems for customers or rivals.
DoorDash Expands Its Reach into Europe
DoorDash is the largest food delivery company in the United States. Buying Deliveroo gives it a much stronger foothold in Europe. Deliveroo is based in London and operates in several countries across Europe and the Middle East. By combining the two companies, DoorDash can expand into new regions without having to build its own delivery network from scratch.
This deal follows DoorDash’s earlier purchase of Wolt, a Finnish delivery service, in 2022. That move gave DoorDash access to northern Europe. Now, with Deliveroo, it gains access to the United Kingdom and other large European markets.
Deliveroo Accepts a Much Lower Valuation
When Deliveroo first went public in 2021, its value was around £7.6 billion. At the time, it was celebrated as one of the biggest tech listings in the UK. Now, just a few years later, the sale price of £2.9 billion shows how much the company’s fortunes have changed.
Several factors hurt Deliveroo. The boom in food delivery during the COVID-19 pandemic faded as people returned to restaurants. The company also faced strong competition from Uber Eats (UBER) and Just Eat Takeaway (JTKWY). This pressure, combined with inflation and rising costs, pushed its stock price lower.
EU Approval Could Speed Up the Process
The simplified EU review is important because it reduces uncertainty. Investors often worry that regulators might block big deals or place strict conditions on them. In this case, the European Commission is signaling that it expects to approve the takeover without major obstacles.
For DoorDash, a quick approval means it can begin integrating Deliveroo sooner. That includes combining delivery networks, technology platforms, and customer bases. For Deliveroo, it gives a way forward after years of weak performance in the stock market.
What This Means for Customers and Investors
If the deal closes, customers are unlikely to see big changes right away. Food delivery apps usually keep their branding and local operations after a takeover. Over time, though, DoorDash may use its larger scale to reduce costs and improve services.
For investors, the key point is that DoorDash is betting heavily on international growth. Deliveroo may have struggled on its own, but with DoorDash’s resources it could compete more effectively in Europe. The simplified EU review shows regulators see little risk to competition, which makes the takeover far more likely to go through.
Is DoorDash a Good Stock to Buy Now?
According to TipRanks, DoorDash carries a Strong Buy consensus. Over the past three months, 29 analysts have rated the stock, with 22 Buys, seven Holds, and zero Sells.
The average 12-month DASH price target is $303.75, which suggests about a 20.6 percent upside from the latest price of $251.78.
