Ama­zon takes 16pc bite into De­liv­eroo af­ter watch­dog fi­nally grants ap­proval

The Daily Telegraph - Business - - Business -

◆ Ama­zon has fi­nally been given ap­proval to buy a stake in take­away ser­vice De­liv­eroo – 15 months af­ter the deal was first an­nounced, writes Matthew Field.

The US tech ti­tan will buy 16pc of De­liv­eroo, pump­ing in $575m (£440m) of cash to help it stay afloat.

Of­fi­cials at the Com­pe­ti­tion and Mar­kets Au­thor­ity had said in April that they would pro­vi­sion­ally clear the agree­ment be­cause De­liv­eroo had warned it needed cash to stave off col­lapse dur­ing the Covid pan­demic.

The CMA’s fi­nal re­port on the in­vest­ment said that in­ter­nal doc­u­ments from Ama­zon and De­liv­eroo share­hold­ers sug­gested they had viewed the deal as a “po­ten­tial first step to­wards a full ac­qui­si­tion”.

Stu­art McIn­tosh, who led the watch­dog’s in­quiry, added: “If [Ama­zon] were to in­crease its share­hold­ing in De­liv­eroo, that could trig­ger a fur­ther in­ves­ti­ga­tion.”

De­liv­eroo said that 30,000 new restau­rants had joined its food de­liv­ery app so far this year.

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