Story
Delivery Hero Shares Surge on Report of Advanced Uber Takeover Talks
Summary
Shares in German food-delivery firm Delivery Hero jumped over 5% following a report that Uber Technologies is in late-stage negotiations for a potential acquisition, a move that could consolidate the global delivery market.
Shares of Delivery Hero SE (ETR:DHER) surged as much as 6% on Tuesday after a Bloomberg report indicated that Uber Technologies Inc. (NYSE:UBER) is in advanced talks to acquire the German food-delivery company. The news prompted a negative reaction for the potential acquirer, with Uber's stock falling 2% in trading.
Details of the Potential Deal
According to people familiar with the matter cited by Bloomberg, Uber is aiming to finalize an agreement with Delivery Hero as soon as this week. The sources suggested that a transaction would likely value the Berlin-based company at a premium, well above its recent trading price of around €36 per share.
In a subsequent statement, Delivery Hero confirmed it is in "advanced negotiations with Uber" but declined to comment on speculation regarding a specific offer price. The potential deal would mark a significant consolidation in the competitive global food delivery industry.
AdBackground and Market Context
This development follows a previous approach where Uber reportedly offered €33 per share. Uber has already established a substantial position in the company, holding a 24.99% stake plus derivatives that bring its total interest to approximately 36.8%, according to the report.
The takeover talks come after a strong year for Delivery Hero's stock, which has gained about 62% year-to-date. This performance has pushed its market capitalization to approximately €11.2 billion ($12.8 billion), setting a high benchmark for any potential acquisition.
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