Uber Launches $14.8 Billion Bid for Delivery Hero
Synopsis
Uber has launched a $14.8 billion (€41.50 per share) takeover bid for Delivery Hero, a deal that would create the world’s largest food delivery platform outside China.
Key Highlights
- Uber makes $14.8 trillion takeover bid for Delivery Hero
- The agreement would form the largest food delivery group outside of China.
- Even if the acquisition proceeds, regulatory scrutiny is expected and is aimed to close in Q2 2027.
Uber is has launched takeover bid for German food delivery company Delivery Hero, offering €41.50 per share in a deal which values the company at about 14.8 billion dollars.
As Uber fights to grow its fledgling global delivery business in the face of increased competition from Just Eat and DoorDash, the acquisition would create the world’s largest food delivery platform outside China.
New Combined Platform Will Operate Across 99 Countries
Delivery Hero has said that, if completed, the new company would operate in 99 countries and have a gross merchandise value, or GMV for its deliveries of $236 billion.
Uber, the largest single shareholder in Delivery Hero has stipulated that its offer is conditioned on accepting holders of 50% plus one share. Delivery Hero’s management and supervisory board backs the transaction, which is expected to close in second half of 2027.
Regulatory Review Expected
Both companies operate across Europe, the Middle East, Asia and Latin America, so the deal is likely to be closely scrutinised for antitrust concerns.
In a bid to assuage regulatory fears, Delivery Hero has reached a deal to offload its business in 14 markets with German investment firm SSW Partners. Also part of the transaction is an agreement by major shareholder Prosus to sell its just under 17% stake.
Delivery Hero Rejected Earlier Offer
Delivery Hero revealed a Bid from Uber in May when the company was worth around €10 billion (roughly €33 per share). That offer was rejected as too low by the board.
The group, which owns brands including foodpanda and Talabat, Glovo and PedidosYa has seen its shares rise around 62% in 2023. Under the terms of the deal, Uber will invest €2 billion in Germany up until 2031 and keep Delivery Hero’s Berlin headquarters and staff for at least 2029.
Source: Reuters
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