Uber in Advanced Talks to Acquire Delivery Hero
Delivery Hero confirmed advanced talks with Uber regarding a takeover offer, following media reports. A deal could be reached as soon as this week at a price well above €36 per share.
Key Numbers
Delivery Hero, the German food-delivery platform, said on Tuesday it is in advanced negotiations with Uber (UBER) regarding a potential takeover offer, confirming earlier media reports. According to Bloomberg, an agreement could be reached as soon as this week.
Deal Details
- Buyer: Uber (UBER)
- Target: Delivery Hero
- Expected Value: Well above the recent trading price of around €36 per share
- Status: Advanced talks, no final agreement yet
Rationale
Uber aims to expand its food-delivery business globally, particularly in Europe where Delivery Hero has a strong presence. The acquisition would bolster Uber Eats and provide synergies with Uber's existing operations.
Regulatory Challenges
The deal is expected to face scrutiny from European antitrust authorities due to the combined market share in food delivery. Regulators may require concessions or impose conditions for approval.
Impact on Stocks
Delivery Hero shares rose 13% on Tuesday following the reports. Further upside is expected as negotiations progress. Uber shares may face short-term pressure due to potential acquisition costs.
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