Amazon’s major investment in the U.K. delivery firm Deliveroo has been approved by regulators. As CNBC reported, it was an unusually contentious look at the deal by country regulators that underscored the caution they were taking around this massive shift in the restaurant industry by similarly massive players.
“Today’s final decision is the result of a thorough examination of this deal and the markets in which Amazon and Deliveroo operate,” said Stuart McIntosh, who led the inquiry for the Competition and Markets Authority.
The approval came a year and change after Amazon led a $575 million funding round that would give the e-commerce giant a 16 percent stake in Deliveroo. Without knowing Amazon’s portion, however, valuation is tricky. The company was valued at $2 billion prior to the investment, and the total capital raised ticked up to $1.5 billion. That suggests a valuation in the range of $3 billion.
An OK was initially given early in the year as regulators feared the effect of COVID-19 on Deliveroo, but they took a step back when it was clear the pandemic was potentially a boon for food-delivery. That caused regulators to take a deeper look at the competitive nature of the deal, according to CNBC.
The final approval was lauded by Deliveroo and other investors, saying it showed that the market was a wise place to invest.