Uber's $14.8bn Delivery Hero bid backed
Deal would double Uber's global footprint and create one of the largest on-demand food delivery platforms outside China
Delivery Hero's board has endorsed Uber's $14.8 billion takeover offer, recommending that shareholders accept the deal. The proposed acquisition values Delivery Hero at $14.8 billion and would create one of the largest on-demand food delivery platforms in the world.
The deal is part of a wave of consolidation in the industry, with Uber aiming to expand its global footprint and compete with rivals like DoorDash and Just Eat Takeaway. Uber's stake in Delivery Hero had grown from around 7% to approximately 19.5% of issued capital before the current agreement.
Prosus, a major shareholder, has agreed to sell its 17% stake in Delivery Hero to Uber as part of the planned acquisition. Delivery Hero previously agreed to sell its businesses in 14 markets where Uber Eats already operates to New York-based investment firm SSW Partners for $1.6 billion.
The proposed acquisition would double Uber's global footprint and make its delivery platform one of the largest in the world outside of China. Uber set a minimum acceptance threshold of 50%, plus one share of Delivery Hero's outstanding share capital.
## Why it matters The deal is the latest example of consolidation in the on-demand delivery industry. In the past 18 months, Uber agreed to acquire Turkey-based Getir for $335 million, and DoorDash said it would pay $3.87 billion for the U.K.'s Deliveroo. The combined entity could speed up product innovation and open meaningful new avenues for employees, customers, merchants, riders, drivers, and other stakeholders.
The boards of Delivery Hero deem the offer to be in the best interest of the company, its shareholders, employees, and other stakeholders. They support the offer and recommend that Delivery Hero shareholders accept it. The deal would bring together two of the world's largest food delivery platforms and put Uber in a better position to compete with DoorDash and Just Eat Takeaway.
## What happens next Uber's pursuit of Delivery Hero began earlier this year when Delivery Hero confirmed that Uber had submitted an indicative proposal of €33 per share, equivalent to roughly $11.6 billion. The current agreement values Delivery Hero at $14.8 billion, and the deal is expected to be completed subject to shareholder approval and regulatory clearance.
