October 31, 2020

Amazon gets approval to buy stake in UK food delivery firm Deliveroo

A food delivery courier places a bag of food into the back of his bicycle as he prepares to deliver an order from Deliveroo in London.

Simon Dawson | Bloomberg via Getty Images

Amazon has been given approval to buy a minority stake in U.K. food delivery start-up Deliveroo, ending a lengthy battle by the firms to convince regulators the deal would not harm competition.

In May last year, Deliveroo announced it had raised a $575 million funding round led by Amazon. Just two months later, the U.K.’s Competition and Markets Authority put the brakes on the deal as it examined potential anti-competitive implications of the deal. The CMA launched a formal probe into the deal in October.

On Tuesday, the competition watchdog issued its final decision on the investment confirming that Amazon’s minority investment — which would see it take a 16% stake in Deliveroo — can go ahead. That move upheld two previous provisional findings that the deal should be approved. 

“We are delighted that the CMA has concluded its 15 month investigation and that the Amazon minority investment can now go ahead,” a Deliveroo spokesperson said Tuesday.

“This is fantastic news for U.K. customers and restaurants, and for the British economy. British born Deliveroo will use the investment to increase choice and value for customers, support for restaurants and will be able to offer more riders the flexible work they value as the company expands.”

Source link