British meal delivery company Deliveroo suspended its 100 million pound ($133.13 million) share buyback program on Monday, days after it said it had received a proposal from U.S. peer DoorDash.
On Friday, Deliveroo said it had received a 2.7 billion pound takeover proposal from DoorDash on April 5 and would likely recommend the 180 pence-per-share offer to shareholders, subject to agreement on other terms.
The deal is expected to face no regulatory hurdles, as it provides DoorDash access to 10 new markets where it currently has no presence, creating a highly complementary footprint – other competitors might encounter more antitrust issues, a source told Reuters on Friday.
On Monday, Deliveroo said its buyback was suspended with immediate effect and any recommencement of the programme will be announced to the market, and did not provide any other detail.
($1 = 0.7511 pounds)
(Reporting by Chandini Monnappa）
