Key Takeaways
Uber Technologies Inc. has made an indicative offer to acquire German food delivery rival Delivery Hero SE for €33 per share, a move that would consolidate the competitive global food delivery market and sent Delivery Hero shares to an 18-month high.
"Uber Technologies reached out with an indicative proposal of €33 per share in respect of a potential takeover offer to all shareholders," Delivery Hero said in a statement Saturday, confirming earlier reports. The company noted it "remains fully focused on executing its strategic review process."
The offer price represented a 1.76% discount to Delivery Hero's closing price on Friday, according to LSEG data. However, shares in the Berlin-based group jumped 10% to €37 on Monday morning, their highest level since November 2024, valuing the company at €11.2 billion ($13.04 billion).
The bid is the culmination of a significant stake-building exercise by Uber. The U.S. ride-hailing and delivery giant recently increased its holding in Delivery Hero from about 7% to 19.5%, with an additional 5.6% held in derivatives, making it the largest shareholder. The move signals a strategic shift from Uber's earlier statements in April that it did not intend to cross the 30% threshold that triggers a mandatory public tender offer in Germany.
Uber's play for Delivery Hero comes amid a wave of consolidation in the food delivery sector and reported interest from other parties. Sources told the Financial Times that rival DoorDash has also expressed interest in Delivery Hero's Middle Eastern unit and had previously explored a full takeover. The intense competition follows Just Eat Takeaway's sale of Grubhub and DoorDash's acquisition of Deliveroo last year.
For Delivery Hero, the offer arrives during a period of transition. The company has been conducting a strategic review to boost shareholder value, which includes the potential sale of its South Korean platform, Baemin. Furthermore, founding Chief Executive Niklas Östberg is set to step down by March 2027, following pressure from shareholders.
Uber's path to a full bid accelerated in recent months. In April, it acquired a 4.5% stake from then-top shareholder Prosus N.V. for €270 million, or €20 per share. Prosus has been steadily reducing its position, having sold another 5% stake to Aspex Management in May for €22 per share. Uber's current indicative offer of €33 per share represents a significant premium to those earlier transactions, reflecting its escalating interest in a full acquisition. The next steps will depend on the recommendation of Delivery Hero's board and potential regulatory reviews in the various markets where the two companies operate.
This article is for informational purposes only and does not constitute investment advice.
