UK Competition regulator withhold Amazon’s Deliveroo deal


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UK Competition regulator withhold Amazon’s Deliveroo deal

On Friday, the 5th of July 2019, competition regulator of United Kingdom had intervened to stall an Amazon.com Inc. deal with an online food delivery service provider, Deliveroo, founded back in 2013s in London, while the British competition regulator had also added that it had been contemplating a full investigation over the attempted merger and a fundraising campaign earlier.

Nonetheless, Amazon’s latest move to takeover Deliveroo came forth after London-based Deliveroo had raised about $575 million in a fundraising campaign in Britain which had actually been led by the US-based Amazon.com Inc.

what the world’s No. 1 online retailer called as ‘a minor shareholding’ and triggered legal questions over a potential acquisition of the British food delivery business. Besides, after May’s fund-raising campaign, Deliveroo had also left ‘Uber Eats' behind in the global race of meal delivery business.

However, following Amazon’s latest attempt to takeover Deliveroo, Britain’s Competition and Markets Authority (CMA) had blocked the merger attempt adding that it had served an initial enforcement order for the two companies later last month, ordering both of the companies to operated separately and triggering possibilities of a criminal investigation about the transaction.

Apart from that the IFO (Initial enforcement order) had also included that the companies could not be allowed to push forth for a tie-up. As a matter of fact, the Deliveroo investment had remarked Amazon.com Inc.’s latest attempt to make entry into the food delivery market, worth of about $100 billion globally.