BERLIN — Uber officially launched a public takeover bid for Delivery Hero on Thursday, placing a value of roughly $14.8 billion on the German food delivery company. The move is part of the U.S. ride-hailing giant’s broader push to grow its food delivery operations around the world.
Under the terms of the offer, Uber is proposing to pay €41.50 — equivalent to about $47.58 — per share in cash. However, the deal hinges on at least 50% plus one share of Delivery Hero being tendered by shareholders.
If completed, the acquisition would bring Delivery Hero’s operations into the Uber Eats network, extending its reach across Europe, the Middle East, Asia, and Latin America. The deal is expected to face scrutiny from antitrust regulators due to overlapping business activities between the two companies in several markets.
Delivery Hero shares jumped about 5.7% in premarket trading in Frankfurt following the announcement. The offer price represents a premium of roughly 34% above Delivery Hero’s three-month volume-weighted average share price before the takeover was announced. Shares in the company had closed at €38.18 on Wednesday.
As part of the broader transaction, Delivery Hero has agreed to divest a portion of its business spanning 14 markets to SSW Partners, a U.S.-based investment firm, for approximately €1.4 billion.
Earlier in the week, on Tuesday, Delivery Hero had confirmed it was in advanced discussions with Uber about a possible takeover. The announcement follows word that major shareholder Prosus has agreed to sell its stake of just under 17% in the food delivery firm, according to Uber. Including derivatives, Uber had already secured a stake of just under 37% in Delivery Hero ahead of the formal offer.
