Key Takeaways
- Uber Technologies has entered final-stage negotiations to purchase Delivery Hero, a Germany-based food delivery platform, with a transaction potentially finalizing within days.
- The Berlin-based company acknowledged ongoing discussions are at a sophisticated phase while refusing to address pricing rumors.
- Any transaction would probably value the German firm significantly above its current market price of approximately €36 per share.
- Shares of the Berlin company surged over 5% following the announcement, whereas Uber’s stock declined nearly 3%.
- The San Francisco-based ride-hailing company had previously proposed a €33-per-share bid in May and subsequently increased its ownership position to almost 37%.
Uber Technologies has progressed to late-stage acquisition discussions with Delivery Hero, the Berlin-headquartered food delivery operator, per a Bloomberg news report released Tuesday. Sources indicate a transaction could materialize before week’s end.
The German food delivery company acknowledged the ongoing negotiations, issuing a public statement confirming discussions have reached an advanced phase. Management declined to provide commentary on reported valuation figures or offer pricing.
Uber stock experienced a nearly 3% decline Tuesday after the acquisition report surfaced. Meanwhile, Delivery Hero’s shares climbed more than 5%, reaching €38.93 on Frankfurt’s stock exchange.
Any finalized agreement would presumably place Delivery Hero’s valuation substantially higher than its recent €36 per share market price. The spring proposal from Uber placed the company’s worth at €33 per share, translating to approximately €10 billion ($11.38 billion).
According to Financial Times reporting, Uber had previously approached a major Delivery Hero investor with a €38-per-share proposal, which was subsequently rejected.
Reuters confirmed that Uber expanded its ownership interest in the German company to nearly 37% from 25%, purchasing the additional equity stake from co-investor Aspex Management.
Months-Long Acquisition Campaign
This buyout initiative has been developing over an extended timeline. Delivery Hero initially disclosed in late May that it had received an acquisition proposal from Uber.
That initial bid stood at €33 per share. The current sophisticated negotiations indicate Uber appears willing to increase its offer to secure the transaction.
The Berlin-based operation manages food delivery services across numerous international markets. According to Bloomberg sources, any merger between these companies would inevitably face extensive antitrust examination across multiple regulatory territories.
Uber representatives declined to provide statements to both Bloomberg and Reuters regarding the reported negotiations.
Financial Analysis
Delivery Hero’s equity valuation has remained suppressed compared to where a potential transaction might settle. The recent €36 trading price falls short of even the initial €38-per-share overture that was turned down by a significant shareholder.
A closing deal price exceeding €36 would deliver a premium to current Delivery Hero stockholders. The precise valuation remains undisclosed, as company representatives have refused to discuss pricing matters publicly.
With nearly 37% ownership in Delivery Hero, Uber already ranks among the company’s most substantial stakeholders. This considerable position provides Uber with significant leverage as formal deal negotiations progress.
Delivery Hero’s Tuesday confirmation of sophisticated discussions represented the most explicit public recognition to date that a transaction is being earnestly pursued.
Uber representatives declined comment when approached by Reuters.
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