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Uber Technologies has approached Delivery Hero with a takeover proposal that values the German food delivery group at about €10 billion. The offer comes as global food delivery companies face slower growth, tighter margins, and rising pressure to combine operations across key markets.
Delivery Hero confirmed that it received an approach from Uber at €33 per share. However, the Berlin-based company said it “remains fully focused on executing its strategic review process,” leaving doubt over whether talks will move toward a formal deal.
Delivery Hero said Uber’s proposal values the company at €33 per share. That price sits slightly below the company’s Friday closing price of €33.59, according to LSEG data cited by Reuters. It also stands only three cents above Thursday’s closing price, before reports of the talks first emerged.
Uber already holds close to 20% of Delivery Hero. The company also has options for another 5.6% stake, according to disclosures. Under the current proposal, Uber would need to spend about €8 billion for the remaining shares it does not already own.
However, the offer may face resistance from some investors. The Financial Times reported that Uber’s proposal was rejected, with some shareholders seeking more than €40 per share. That higher level would place a stronger premium on Delivery Hero’s recent market price.
Delivery Hero shares rose 1.9% on Friday. The stock has gained 48% this year, supported by expectations of asset sales and possible takeover interest. Even so, the current offer does not provide a clear premium over the latest share price.
Delivery Hero has been reviewing its assets after pressure from shareholders. Several investors have urged the company to consider sales and other strategic options as competition remains high across food delivery markets.
The company recently said founder and CEO Niklas Oestberg would step down. His planned exit followed pressure from large shareholders that pushed for changes at the company. Delivery Hero has not shared further details on Uber’s offer beyond confirming the approach.
Food delivery companies have continued to consolidate across major regions. DoorDash agreed to buy UK-based Deliveroo last year. Meanwhile, Prosus announced plans to buy Just Eat Takeaway.com in the Netherlands.
Uber’s interest in Delivery Hero comes as it seeks to grow outside the United States. A takeover would expand Uber’s exposure to emerging markets and strengthen its position against DoorDash in global delivery services.
However, other bidders may still watch the process. DoorDash has shown interest in Delivery Hero’s Middle East business, Talabat, according to a person familiar with the matter cited by Bloomberg. No offer has been submitted, according to that report.
Any deal would need to account for Delivery Hero’s major shareholders. Prosus owns almost 17% of the company, while Aspex Management holds more than 14%. Their positions give them strong influence over any takeover discussion.
Aspex has pushed for asset sales and changes at Delivery Hero. The activist investor also helped lead pressure that resulted in Oestberg’s planned departure. Therefore, Uber may need broader shareholder support before any deal can advance.
Uber has been speaking with Delivery Hero investors about its interest, according to people familiar with the matter. The company is also working with advisers as it studies ways to increase its stake further.
Morgan Stanley helped Uber build its holding quickly through derivatives, according to Bloomberg. However, Uber may need antitrust approval before crossing certain ownership levels, one person familiar with the matter said.
Talks remain ongoing, and there is no certainty that they will lead to a transaction. Delivery Hero’s public statement kept the company’s position narrow, saying only that it is focused on its strategic review.
Bloomberg Intelligence analysts Mandeep Singh and Robert Biggar wrote before the indicative offer became public that Delivery Hero could fetch between $15 billion and $18 billion in a deal with Uber. That estimate sits well above the current proposal and could add doubt around whether shareholders accept the opening price.
Also Read: Uber Agrees to Acquire Voi for $1.2B as European Micromobility Race Heats Up
