UK competition watchdog probes Amazon acquisition of Deliveroo

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UK’s competition watchdog, the Competition and Markets Authority, CMA said it is investigating the acquisition of Deliveroo by Amazon Inc.

In a statement issued earlier today, CMA said:

“The CMA is investigating the acquisition by Amazon.com NV Investment Holdings LLC of certain rights and a minority shareholding in Roofoods Ltd (trading as Deliveroo).”

It would be recalled that Amazon had in May announced that it plans to buy controlling stakes in Deliveroo via a $575 million Series G preferred shared funding round.

Amazon was joined in the funding round by existing investors T. Rowe Price, Fidelity Management and Research Company, and Greenoaks.

The fundraising takes the total Deliveroo has raised to date to $1.53 billion.

Deliveroo said it will use the funding to build its world-class service—bringing customers the food they want whenever and wherever they want it, offering even more work for riders, and helping restaurants to grow their businesses by reaching new customers.

The CMA said it will come up with a decision and update as soon as it is practicable.

Amazon is yet to comment on the matter.