Uber Technologies (NYSE:UBER) has reached an agreement to acquire Germany’s Delivery Hero (TG:DHER) in a transaction valued at approximately $14.8 billion, strengthening its international food delivery operations as competition across the sector continues to intensify.
Under the terms of the agreement, Uber will pay Delivery Hero shareholders €41.50 in cash for each share. After accounting for Uber’s existing ownership stake, the transaction carries an implied value of around $13.7 billion and represents an 8.7% premium to Delivery Hero’s previous closing share price.
Existing stake helps pave the way for acquisition
Before announcing the takeover, Uber already controlled approximately 24.8% of Delivery Hero’s voting rights and held an additional 11.7% economic interest through equity derivative positions.
The two companies have signed a definitive agreement, while Delivery Hero’s management board and supervisory board have unanimously endorsed the transaction and said they intend to recommend that shareholders accept the offer once the official documentation is released.
Regulatory review expected to take time
Despite the agreed offer, Delivery Hero shares traded below the takeover price following the announcement, reflecting investor expectations that regulatory approvals could take considerable time.
Jefferies said the market reaction suggests investors are focused more on the execution risk than on the agreed valuation.
The brokerage added that a competing offer appears unlikely, noting that Prosus has already irrevocably committed to tender its approximately 17% shareholding, while Delivery Hero’s board has formally backed Uber’s proposal.
Jefferies also pointed to an expected completion date during the second half of 2027, indicating that competition authorities are likely to conduct an extensive antitrust review, even though the companies have already agreed to dispose of selected assets to help address regulatory concerns.
Food delivery sector continues to consolidate
The agreed purchase price exceeds the roughly €40-per-share proposal that had been reported earlier in the week, when Uber and Delivery Hero confirmed they were engaged in advanced takeover discussions.
The transaction represents another major consolidation move within the global online food delivery industry following slower post-pandemic growth, rising operating costs and increased competitive pressure.
Recent industry deals include DoorDash’s agreement to acquire Deliveroo and Prosus’ completed takeover of Just Eat Takeaway.com.
For Uber, acquiring Delivery Hero would significantly broaden its international presence, adding operations across more than 60 countries and strengthening its position in the increasingly competitive global delivery market.
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