Key Takeaways:
Uber Technologies is in advanced talks to acquire Delivery Hero, the German food-delivery company, in a deal that could value the Berlin-based firm at more than €10 billion ($11.4 billion).
Delivery Hero confirmed Tuesday that discussions are at an advanced stage, though it declined to comment on speculation regarding the offer price, according to a company statement. "Any potential offer would be made to all shareholders," the company said, without elaborating on terms.
Uber's initial proposal in May valued Delivery Hero at €33 a share, or roughly €10 billion. The company later offered €38 a share to one of Delivery Hero's principal shareholders, a bid that was rejected, the Financial Times reported. Uber has since expanded its stake in Delivery Hero to about 37% from 25%, acquiring additional shares from co-investor Aspex Management, according to Reuters.
A deal would significantly expand Uber's global food-delivery footprint, combining Uber Eats with Delivery Hero's operations across Europe, Asia and the Middle East. Any transaction would face comprehensive antitrust review across multiple jurisdictions, given the overlapping markets. Delivery Hero shares rose more than 5% to €38.93 in Frankfurt trading Tuesday, while Uber fell nearly 3%.
Delivery Hero, which manages food-delivery services spanning numerous international markets, has seen its shares gain 62% this year, giving it a market capitalization of about €11.2 billion ($12.8 billion). Uber's expanded ownership position gives it considerable leverage as formal negotiations continue, though the company declined to comment when approached by Reuters.
The acquisition would mark Uber's largest deal since its 2019 initial public offering and represents Chief Executive Officer Dara Khosrowshahi's most aggressive push yet to consolidate the global food-delivery market. A deal at €38 a share or higher would deliver a premium of roughly 15% to Delivery Hero's undisturbed price before the talks were disclosed, based on the stock's level before Bloomberg first reported the negotiations in May. The offer would also need to clear regulatory hurdles in the European Union, where competition authorities have increasingly scrutinized Big Tech acquisitions, as well as in markets across Asia and the Middle East where both companies operate.
This article is for informational purposes only and does not constitute investment advice.
