Acquisition: “Uber acquires Delivery Hero”
The global on-demand food delivery platform Delivery Hero has had its supervisory and management boards back Uber’s $15 billion takeover offer, with the boards recommending shareholders approve the deal. After reviewing the offer, the boards said it was in the best interests of the company, its shareholders, employees and other stakeholders and described the price as “fair and adequate.”
The boards noted the transaction could “accelerate product innovation” and said the tie-up, if approved, would double Uber’s global footprint and make its delivery platform one of the largest in the world outside of China. Uber, already Delivery Hero’s largest shareholder, set a minimum acceptance threshold of 50% plus one share of Delivery Hero’s outstanding share capital, and major shareholder Prosus has agreed to sell its 17% stake. Delivery Hero had previously agreed to sell its businesses in 14 markets where Uber Eats already operates to investment firm SSW Partners for $1.6 billion.
Delivery Hero is positioned as one of the leading on-demand food delivery platforms globally. The boards said the proposed transaction would strengthen competitive positioning against rivals such as DoorDash and Just Eat Takeaway and is part of a broader consolidation trend in the delivery sector, which has seen several large deals in recent months.
The companies expect the deal to expand geographic reach and support further product development and innovation across their delivery services.
“The price was ‘fair and adequate’ and the deal had the ‘potential to accelerate product innovation.'”
