Amazon's merger with Deliveroo given final approval

Amazon’s proposed investment into online delivery platform Deliveroo has officially been given the go-ahead by the Competitions and Markets Authority (CMA). The final decision comes after the CMA gave provisional approval for the deal in April following a year-long investigation into whether it could damage competition in the online restaurant food delivery sector.

Despite evidence submitted by companies such as Just Eat which criticised the decision in recent months, the CMA concluded that the minority investment “has not resulted, and may not be expected to result, in substantial lessening of competition”.

The verdict means that after 15 months of investigation, the merger can finally go ahead.

A Deliveroo spokesperson said: “We are delighted that the CMA has concluded its 15-month investigation and that the Amazon minority investment can now go ahead.

“This is fantastic news for UK 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.

“Deliveroo is excited that Amazon, the most customer-obsessed and innovative company in the world, has shown such a huge vote of confidence in Deliveroo and chosen to invest in the company’s future.”

Deliveroo had earlier provided financial evidence to the CMA that without the tech giant’s investment it would go bust due to the loss of revenue caused by Covid-19.

However, the CMA added that should Amazon seek to increase its shareholding in Deliveroo from 16%, this could trigger a further investigation.

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