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Uber Eyes Delivery Hero for Global Food Dominance
24 May
Summary
- Uber proposed buying Delivery Hero for €33 per share.
- Delivery Hero confirmed Uber's takeover interest but is reviewing.
- Uber already owns nearly 20% of Delivery Hero's shares.
Uber Technologies Inc. has made a €33 per share offer for Delivery Hero SE as part of its strategy to enhance competition against DoorDash Inc. internationally. Delivery Hero acknowledged Uber's acquisition interest, as reported by Bloomberg and the Financial Times, but stated its primary focus remains on its ongoing strategic review. The German company indicated that further updates would be provided as necessary.
Uber's interest in Delivery Hero has intensified, particularly after disclosing its current ownership of nearly 20% of the company's stock and instruments. This stake has contributed to a significant rally in Delivery Hero's shares this year. Uber has also been exploring options for a full takeover, consulting with advisors on how to increase its holding further and engaging with other Delivery Hero investors.
Despite Uber's statement that it does not currently intend to exceed a 30% stake, which would trigger a mandatory public tender offer under German law, the company is continuously evaluating investment opportunities. Potential antitrust approvals may also be required for crossing certain ownership thresholds. The outcome of these deliberations remains uncertain, with no guarantee of a deal.
Delivery Hero has faced investor pressure to improve its financial performance. This pressure has led to a leadership change, with CEO Niklas Östberg deciding to step down following demands from activist investor Aspex.
