Uber Technologies Inc. is reportedly in advanced negotiations to acquire German food-delivery company Delivery Hero SE, with a deal potentially valuing the German group at around €12.5 billion. The agreement could be finalized as early as this week. Uber already holds a significant stake in Delivery Hero, owning 24.99% of its shares and an additional 11.81% through derivatives, bringing its total interest to approximately 36.8%.
This potential acquisition follows an earlier offer from Uber of €33 per share, which was below the then-current trading price. However, sources suggest the new deal would value Delivery Hero well above its recent trading price of €36 per share, building on the company's 62% share gain this year, which pushed its market capitalization to €11.2 billion ($12.8 billion). The transaction would mark a significant consolidation in the food delivery market, which has seen slower growth and increased competition following the pandemic-driven boom.
Delivery Hero has been undergoing a strategic review due to pressure from shareholders, including Aspex Management. The company operates in over 60 markets, and the overlap with Uber in parts of Europe and the Middle East will likely trigger scrutiny from antitrust regulators globally. Competitors like DoorDash Inc. and Saudi Arabian quick delivery startup Ninja have also expressed interest in acquiring parts of Delivery Hero's Middle East business or the entire company. Prosus NV, another significant Delivery Hero shareholder, similarly acquired Just Eat Takeaway.com NV last year, highlighting the overarching trend of consolidation in the sector.
