Uber has launched a public takeover offer for Germany’s Delivery Hero, valuing the food delivery company at about US$14.8 billion as the US ride-hailing giant seeks to strengthen its Uber Eats business across international markets.
The all-cash offer values Delivery Hero at €41.50 per share, representing a premium of around 34% over the company’s three-month volume-weighted average share price before the takeover proposal was announced. Uber’s offer is conditional on securing acceptance from shareholders representing at least 50% plus one share.
The proposed acquisition would significantly expand Uber Eats’ presence across Europe, the Middle East, Asia and Latin America. However, the deal is also expected to attract scrutiny from competition regulators because of the companies’ overlapping operations in several markets.
Delivery Hero shares rose about 5.7% in Frankfurt premarket trading following the announcement. The stock had closed at €38.18 on Wednesday.
As part of the transaction, Delivery Hero has agreed to sell part of its business covering 14 markets to US investment firm SSW Partners for about €1.4 billion.
The Berlin-based company confirmed earlier this week that it was in advanced talks with Uber regarding a potential takeover.
Uber also said major shareholder Prosus has agreed to sell its stake of just under 17% in Delivery Hero. Including derivatives, Uber has already secured a holding of just under 37% in the company.
If completed, the acquisition would mark one of Uber’s biggest international expansion moves in food delivery as it continues to build scale outside its core ride-hailing business.
