Delivery Hero Confirms Advanced Takeover Talks with Uber Technologies

Delivery Hero SE on Tuesday confirmed it is in advanced negotiations with Uber Technologies Inc. regarding a potential takeover, following media reports that the U.S. ride-hailing giant was close to an agreement. The announcement validates market speculation and points toward significant consolidation in the competitive food-delivery sector.

Market Reaction

Investors reacted swiftly to the news. Shares of Berlin-based Delivery Hero closed 5.76% higher at €39.10, pushing its market capitalization to approximately €11.2 billion ($12.8 billion). In contrast, shares of Uber were down nearly 2% in U.S. trading.

The confirmation followed a Bloomberg News report suggesting a deal could be reached this week at a price well above Delivery Hero's recent trading level of around 36 euros per share. While Delivery Hero declined to comment on the potential offer price, it stated that any bid would be extended to all shareholders. Uber has also declined to comment.

Strategic Context

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The talks represent a major step in the ongoing consolidation of the food-delivery industry, which has been marked by intense competition and pressure on profit margins. For Uber, acquiring Delivery Hero would significantly expand the geographic reach of its Uber Eats network across Europe, the Middle East, Asia, and Latin America.

This development follows months of speculation, including reports in May that Uber had approached Delivery Hero with an offer of 38 euros per share, which was considered too low by some investors at the time. According to a previous Reuters report, Uber had also recently increased its stake in Delivery Hero to nearly 37% from 25%.

Potential Hurdles

A successful merger would create a dominant player in several key markets, which would almost certainly attract close scrutiny from antitrust regulators. The significant overlap in the companies' operational footprints could present a major regulatory hurdle to completing any potential deal.