Uber has launched a public takeover offer for German food delivery company Delivery Hero, in a deal valued at $14.8 billion that would create the world’s largest food-delivery company outside China.
The US ride-hailing giant announced on Thursday that it is offering €41.50 ($47.58) in cash per share, representing a 34% premium to Delivery Hero’s three-month volume-weighted average share price before the takeover announcement.
The acquisition marks a significant step in Uber’s strategy to strengthen its global food-delivery business as competition intensifies, particularly from rival DoorDash, which has been expanding aggressively into international markets.
If completed, the combined company would operate across 99 countries with a projected gross merchandise value (GMV) of $236 billion in 2025, according to a joint statement by both companies.
Uber has made the offer conditional on securing acceptance from shareholders representing at least 50% plus one shareof Delivery Hero.
Delivery Hero shares initially rose about 5.7% in premarket trading in Frankfurt following the announcement but later reversed course, trading around 1% lower shortly after the market opened.
The proposed acquisition would significantly expand Uber Eats’ footprint across Europe, the Middle East, Asia and Latin America, although the deal is expected to face close scrutiny from antitrust regulators due to overlapping operations in several markets.
To help address competition concerns, Delivery Hero has agreed to sell part of its business covering 14 markets to US investment firm SSW Partners for approximately €1.4 billion.
As part of the agreement, Uber also pledged to invest €2 billion in Germany by 2031 and committed to maintaining Delivery Hero’s headquarters in Berlin, along with its workforce, until at least 2029.
Delivery Hero’s management and supervisory boards said they support the transaction and intend to recommend that shareholders accept the offer after reviewing the formal offer document.
“The food delivery business is highly competitive and scale dependent,” said Delivery Hero Supervisory Board Chair Kristin Skogen Lund.
“Joining forces with a strong partner now is the right move for Delivery Hero to best secure its future competitiveness,” she added.
The deal is expected to close in the second half of next year, subject to shareholder approval and regulatory clearance.
Delivery Hero had confirmed earlier this week that it was in advanced negotiations with Uber over a potential takeover.
Uber said major shareholder Prosus has agreed to sell its stake of just under 17% in Delivery Hero. Combined with existing holdings and derivative exposure, Uber has already secured economic exposure to nearly 37% of the company’s shares. Following the tender commitment, Uber’s total economic interest would exceed 53%, strengthening its position to complete the acquisition.
Boluwatife Enome
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