Story
Uber Nears €12.5 Billion Deal to Acquire Delivery Hero, FT Reports
Summary
The U.S. ride-hailing giant is in advanced talks to acquire the German food delivery company for approximately €41 per share, a move aimed at expanding Uber Eats' global footprint, according to the Financial Times.
Uber is nearing a deal to acquire German food delivery firm Delivery Hero in a transaction valued at approximately €12.5 billion ($14.34 billion), the Financial Times reported on Wednesday. The potential acquisition would significantly expand the global footprint of the Uber Eats platform, though it is expected to face regulatory review.
The Proposed Deal
According to the FT report, which cited multiple people familiar with the matter, Uber is set to pay roughly €41 per share for Delivery Hero. The deal could be formally announced as early as Thursday, though the sources cautioned that the final terms and timing could still change.
The offer price represents a premium over Delivery Hero's recent market value of approximately €11.6 billion. The report follows a confirmation from Delivery Hero on Tuesday that it was in "advanced negotiations" with Uber regarding a potential takeover, without providing further details.
Strategic Rationale and Antitrust Concerns
The acquisition would be a major strategic move for Uber, allowing its Uber Eats division to absorb a major competitor and expand its network across Europe, the Middle East, Asia, and Latin America. Such consolidation would intensify competition in the highly competitive global food delivery market.
AdHowever, the significant overlap in the companies' operations is expected to attract close scrutiny from antitrust regulators. To mitigate these concerns, the proposed deal reportedly includes a plan for Delivery Hero to divest certain assets. The company would sell its Turkish unit, Yemeksepeti, and several other European operations to an investment firm to limit the geographic overlap with Uber.
Background of the Negotiations
Discussions between the two companies follow months of speculation over Delivery Hero's future. According to previous media reports, Uber had approached the German firm in May with an initial offer of €38 per share, which investors reportedly viewed as too low.
Reuters reported that both Uber and Delivery Hero did not immediately respond to requests for comment on the specifics of the Financial Times report.
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