Uber Acquires Delivery Hero for $14.8B, Expanding to 99 Markets
Uber (NYSE:UBER) has agreed to acquire Delivery Hero (DELHY) for $14.8 billion, offering $47.60 per share, a 26% premium over its May proposal. The acquisition will add 50 new markets, bringing Uber's total to 99. The deal is subject to regulatory approval.
Key Numbers
Uber Technologies (NYSE:UBER) has announced the acquisition of Delivery Hero, a German food-delivery company, in a deal valued at $14.8 billion. Uber will pay $47.60 per Delivery Hero share, representing a 26% premium over its original $33 per share proposal in May. The acquisition aims to expand Uber's global footprint to 99 markets by adding Delivery Hero's operations across 50 new markets.
Deal Details
| Item | Value |
|---|---|
| Deal Value | $14.8 billion |
| Offer Price per Share | $47.60 |
| Premium over May Offer | 26% |
| New Markets Added | 50 |
| Total Markets Post-Deal | 99 |
Rationale
Uber seeks to strengthen its position in the global food-delivery market and compete with rivals like DoorDash and Just Eat Takeaway. The deal provides Uber with access to new markets in Asia, Europe, and the Middle East where Delivery Hero has a strong presence.
Regulatory Challenges
The deal is subject to regulatory approvals in multiple jurisdictions and may face antitrust scrutiny due to Uber's market size. The approval process is expected to take several months.
Impact on Stocks
Uber shares rose slightly in pre-market trading to $73.42, while Delivery Hero shares were little changed at €38.28 in Frankfurt. Delivery Hero shares have gained 68% year-to-date.
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