Uber Eyes €10 Billion Acquisition of Delivery Hero
Uber Technologies has put forth a takeover proposal to acquire the German food delivery titan, Delivery Hero. The deal, valued at an estimated €10 billion ($11.6 billion), is one of the most significant potential consolidation moves in the global food delivery sector. The Berlin-based company confirmed on Saturday that it received an indicative offer of €33 per share from Uber.
The proposed acquisition would considerably broaden Uber’s international presence, extending beyond the United States. This move is a strategic attempt to intensify competition with its rival, DoorDash. Uber, which already holds a 20% stake in Delivery Hero with options for an additional 5.6%, would need to pay approximately €8 billion under the proposed terms to acquire the remaining shares.
Delivery Hero’s shares saw a 9.8% surge to €36.88 in Frankfurt trading on Monday. This is approximately 13% above Uber’s indicative offer, suggesting that investors anticipate a higher bid will be necessary to finalize the deal. The Financial Times reported that some investors are seeking an offer exceeding €40 per share. The stock has seen a 48% increase this year, partly driven by speculation of asset disposals and takeover interest.
The deal emerges as Delivery Hero undergoes a strategic review due to pressure from activist shareholders. DoorDash has also shown interest in Delivery Hero’s Middle East business, Talabat, though it has not yet submitted a formal offer. Any transaction would likely face regulatory scrutiny across multiple markets given the combined companies’ substantial presence in the food delivery and quick commerce sectors.
Bloomberg Intelligence analysts estimate that Delivery Hero could fetch between $15 billion and $18 billion in a deal with Uber. They note that such a takeover would significantly expand Uber’s presence in emerging markets and strengthen its global competitive position.
Source: Bloomberg