UPDATE 1-Amazon offers loan to Deliveroo amid UK probe - Bloomberg
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Jan 14 (Reuters) - E-commerce giant Amazon.com Inc has offered a loan to food delivery group Deliveroo as a UK probe into the start-up's last funding round unveiled threat of a cash crunch, Bloomberg reported on Tuesday.
Britain's Competition and Markets Authority (CMA) had last month launched an in-depth investigation into Amazon's purchase of stake in Deliveroo after the companies failed to assuage its initial concerns before a Dec. 18 deadline.
While the size of the loan is unclear, Deliveroo has significant funds to continue operating, the report https://www.bloomberg.com/news/articles/2020-01-14/amazon-lends-deliveroo-cash-while-u-k-probes-investment?utm_medium=social&cmpid=socialflow-twitter-business&utm_content=business&utm_source=twitter&utm_campaign=socialflow-organic&sref=V7uxlNge said, citing people familiar with the matter.
"Amazon's loan will be converted into equity if the CMA approves the original deal," Bloomberg reported.
Amazon had led a $575 million fundraising in Deliveroo in May and the probe could disrupt its efforts to compete with Uber Technologies Inc's Uber Eats, Just Eat, and Takeaway.com in the food delivery industry.
The report said Deliveroo had about 185 million pounds ($240.94 million) in cash and cash equivalents at the end of 2018, according to its most recent annual report.
Deliveroo declined to comment and Amazon did not immediately respond to a Reuters request for comment.
($1 = 0.7678 pounds) (Reporting by Ambhini Aishwarya in Bengaluru; Editing by Amy Caren Daniel)
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