*

DoorDash ( DASH ) offers Deliveroo ( DROOF ) 180 pence per share

*

Deliveroo Independent Committee recommends offer

*

Offer final, but DoorDash ( DASH ) reserves right to increase it if

third

party emerges

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Deliveroo's ( DROOF ) shares have struggled since 2021 debut

(Adds details on deal and companies, executive comment, and

background throughout)

May 6 (Reuters) - U.S. meal delivery firm DoorDash ( DASH )

will buy British rival Deliveroo ( DROOF ) for 2.9

billion pounds ($3.85 billion), the companies said on Tuesday,

as they look to expand their reach and take on competition.

The companies rekindled talks last month after DoorDash ( DASH )

approached Deliveroo ( DROOF ) with a 180 pence per share proposal, which

was confirmed on Tuesday as the final offer.

Previous negotiations had ended in disagreement over

Deliveroo's ( DROOF ) valuation, Reuters reported last year.

DoorDash ( DASH ), which provides a restaurant delivery service through a

mobile application, said it would not increase its offer, but

reserved a right to do so if a third party emerged with a

competing offer for Deliveroo ( DROOF ).

The acquisition will help Doordash ( DASH ) grow its market share in

Europe, competing against Just Eat and Uber Eats. Britain and

Ireland are Deliveroo's ( DROOF ) largest market, accounting for 62% of

the value of its orders in its latest quarter.

In 2024, Deliveroo ( DROOF ) and DoorDash ( DASH ) had orders worth about a

combined $90 billion, the companies said.

Deliveroo's ( DROOF ) other large markets include France and Italy, but

the deal is not expected to face regulatory hurdles, as DoorDash ( DASH )

has virtually no presence in Deliveroo's ( DROOF ) 10 markets, a source

told Reuters last month.

Deliveroo's ( DROOF ) shares have struggled since their debut in 2021, a

time when meal delivery services were boosted by the pandemic.

"Following careful consideration, the Deliveroo Independent

Committee has unanimously decided to recommend this offer,

considering it to be in the interests of all our shareholders

and wider stakeholders," its Chair Claudia Arney said in a

statement.

($1 = 0.7526 pounds)