Delivering deals: The rise of e-commerce M&A in Europe
E-commerce has become an integral part of consumer behavior in Europe, sitting at the intersection of retail and technology. With a significant percentage of internet users engaging in online shopping, the e-commerce sector has witnessed remarkable growth and transformation. This article explores the rise of mergers and acquisitions (M&A) in the European e-commerce landscape, driven by various factors including technological advancements, changing consumer preferences, and economic conditions.
The E-commerce Boom
As of 2024, 77 percent of internet users in the European Union have purchased goods or services online. E-commerce sales across five major European economies—France, Germany, Italy, Spain, and the UK—are projected to rise from €389 billion (approximately US$416 billion) in 2024 to €565 billion (about US$604 billion) by 2029. This growth is fueled by several factors:
- Changing consumer preferences towards online shopping.
- Increased disposable income among consumers.
- Cross-border expansion of e-commerce platforms.
- Easing inflation rates.
- Healthy economic growth across the region.
M&A Activity in E-commerce
The M&A landscape in the European e-commerce sector has seen a notable increase in deal value, particularly in recent years. In 2025, the total value of e-commerce deals reached US$21.5 billion, marking a 17.5 percent year-on-year increase. While the number of deals decreased from 257 in 2024 to 193 in 2025, this shift indicates a trend towards larger, more strategic transactions.
Key Transactions
Some of the most significant deals in 2025 included:
- The acquisition of Just Eat Takeaway.com by Dutch technology investor Prosus for US$4.3 billion, which aimed to create a leading European tech champion in food delivery.
- DoorDash’s acquisition of UK-based food delivery app Deliveroo for US$3.7 billion, enhancing its competitive edge against local rivals.
- EQT’s purchase of Adevinta’s Spanish business for US$2.3 billion, as part of a strategy to streamline operations and focus on core markets.
- KKR’s investment of US$1.2 billion in Etraveli, a Swedish travel technology platform, aimed at supporting its international expansion.
Drivers of E-commerce M&A
Several trends and drivers are influencing the rise of M&A in the European e-commerce sector:
- Artificial Intelligence (AI): The rise of AI is fostering innovation, with startups attracting significant investor interest. For instance, Swap Commerce recently raised US$100 million to enhance its AI-powered platform for e-commerce.
- Agentic Commerce: The emergence of AI shopping agents is set to revolutionize consumer purchasing behaviors, potentially leading to increased deal activity as companies seek to stay ahead of the competition.
- Private Equity Participation: Global private equity firms are increasingly active in the European e-commerce market, with participation in deal volume rising from 26 percent in 2024 to 34 percent in 2025.
Regulatory Challenges
Despite the positive outlook for M&A activity, several regulatory hurdles pose challenges for dealmakers:
- The online food delivery sector faces increased scrutiny from regulators, particularly concerning market consolidation and its impact on prices and competition.
- The European Commission’s approval of major acquisitions often comes with conditions, such as divestitures of shares in competing firms.
- Upcoming EU regulations regarding product safety and consumer protection could complicate cross-border acquisitions and increase compliance costs.
Future Outlook
The future of M&A in the European e-commerce sector looks promising, driven by ongoing innovation and changing consumer habits. The competitive deal-making environment is expected to persist, with companies and private equity firms targeting key assets in the industry. Favorable valuations, market innovation, and lower financing costs will likely continue to incentivize M&A activity.
Frequently Asked Questions
Factors driving the growth of e-commerce in Europe include changing consumer preferences, increased disposable income, cross-border expansion, easing inflation, and overall economic growth.
Significant M&A deals include Prosus acquiring Just Eat Takeaway.com for US$4.3 billion, DoorDash acquiring Deliveroo for US$3.7 billion, and EQT’s purchase of Adevinta’s Spanish business for US$2.3 billion.
E-commerce companies in Europe face regulatory challenges such as scrutiny over market consolidation, compliance with product safety regulations, and potential increases in operational costs due to new EU regulations.
Note: The e-commerce landscape is continuously evolving, and staying informed about market trends and regulatory changes is essential for businesses looking to navigate this dynamic environment.
