Uber Launches $14.8 Billion Takeover Offer for Delivery Hero
Uber has launched a $14.8 billion takeover offer for Delivery Hero, aiming to expand its global food delivery business.
SociapaHQ
Uber has made a formal public offer to take over German food delivery firm Delivery Hero in a deal valuing the business at about $14.8 billion. If successful, the deal would create the world’s largest food delivery platform outside of China.
Under the proposed deal, Uber is offering 41.50 euros in cash for each share of Delivery Hero. The offer is subject to acceptance of at least 50 per cent plus one share of the company’s holders.
The combined business would have operations in 99 countries and an estimated gross merchandise volume (GMV) of $236 billion in 2025, greatly increasing the international reach of Uber Eats, the companies said.
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The offer implies a premium of about 34% to Delivery Hero’s three-month volume-weighted average share price before the takeover announcement. Delivery Hero shares initially rose in Frankfurt premarket trading before paring gains
The acquisition would expand Uber Eats' footprint across Europe, the Middle East, Asia and Latin America, but the deal is likely to face scrutiny from antitrust regulators because of overlapping operations.
To allay possible competition issues, Delivery Hero has agreed to divest parts of its business in 14 markets to US investment firm SSW Partners for approximately €1.4 billion.
As part of the deal, Uber has also pledged to invest €2 billion in Germany by 2031. The company said it will keep Delivery Hero's headquarters in Berlin and its workforce in place at least until 2029.
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Both the Management Board and the Supervisory Board of Delivery Hero have backed the deal and said they planned to advise shareholders to accept the offer after examining the formal offer document.
“The food delivery industry is more competitive and scale-dependent than ever before,” said Kristin Skogen Lund, Chair of Delivery Hero’s Supervisory Board, commenting on the proposed acquisition.
She said the company's long-term competitiveness would be guaranteed by linking up with a stronger global partner.
The companies expect the transaction to close in the second half of next year, subject to regulatory clearances and shareholder approval.
