BERLIN: Uber Technologies Inc has offered to take over Delivery Hero SE in a deal that would value the German delivery company at about €10bil (US$11.6bil) as it seeks to ramp up competition with DoorDash Inc outside the United States.
Delivery Hero received an approach from Uber for €33 per share, and “remains fully focused on executing its strategic review process”, the Berlin-based company said in a statement last Saturday.
That price is three US cents higher than Delivery Hero’s closing share price last Thursday, the day before Bloomberg News first reported the talks.
Uber, which owns 20% of Delivery Hero, would be on the hook for about €8bil under those terms. The US company also has options for another 5.6% of shares, it disclosed last week.
Delivery Hero has been conducting a strategic review of its assets following pressure from shareholders. The food delivery business is consolidating globally, driven by slowing growth and heavy competition, and a number of Delivery Hero’s peers in Europe have been targeted.
DoorDash, a dominant player in the restaurant delivery market in the United States, agreed to buy the United Kingdom’s Deliveroo Plc last year. Months earlier, Prosus announced plans to buy Just Eat Takeaway.com NV in the Netherlands. — Bloomberg
