DoorDash is set to acquire UK-based Deliveroo in a £2.9 billion ($3.9 billion) deal, aiming to rapidly expand its footprint across Europe and take on major food delivery competitors including Just Eat and Uber Eats. The acquisition, which values Deliveroo at 180 pence per share, has been unanimously recommended by Deliveroo’s independent committee and already received backing from investors holding approximately 15.4% of the company’s shares.

Deliveroo, which operates in major European markets like the UK, Ireland, France, and Italy, has struggled with its stock performance since going public at 390 pence per share in 2021. This new deal offers a premium over current trading levels, though significantly below the IPO price. DoorDash’s move marks a bold attempt to consolidate its presence overseas, where Deliveroo’s order volume in the UK and Ireland alone makes up 62% of its business.

The companies had reignited negotiations last month, culminating in Tuesday’s confirmed offer. DoorDash made clear it would not raise its bid unless a competing offer emerges—something analysts see as possible, particularly given Amazon’s 14.4% stake in Deliveroo. While Amazon has yet to comment, some market observers speculate it could launch a counterbid. Notably absent from the list of investors supporting the current offer, Amazon’s silence adds uncertainty to the deal’s future.

Deliveroo co-founder and CEO Will Shu, who holds a 6.4% stake in the company, stands to receive around £172.4 million ($229.7 million) under the terms of the acquisition. Combined, DoorDash and Deliveroo reported nearly $90 billion in order value in 2024, underscoring the scale of the potential combined entity.