TLDR
- Uber has unveiled a comprehensive public acquisition proposal for Delivery Hero, placing the German food delivery giant’s valuation at $14.8 billion (€13 billion)
- The cash offer stands at €41.50 for each share, representing a significant premium above Delivery Hero’s current market value
- Key investor Prosus has committed to divesting its approximately 17% ownership position, elevating Uber’s total economic stake to roughly 53%
- To facilitate regulatory clearance, Delivery Hero plans to divest assets across 14 markets, including its Turkish business Yemeksepeti
- Transaction completion is anticipated during the latter half of 2027, accompanied by Uber’s pledge to invest €2 billion in Germany across five years
Uber has officially initiated a comprehensive public acquisition offer for Delivery Hero, the German food delivery powerhouse, in a transaction valued at approximately $14.8 billion.
The ride-hailing and delivery giant is proposing €41.50 in cash for each share. This pricing structure delivers a notable premium compared to Delivery Hero’s recent market valuations. The proposal includes a minimum acceptance threshold requiring 50% of shares plus one additional share.
Uber stock (UBER) climbed 0.82% following the announcement. Delivery Hero (DHER) saw a modest increase of 0.08%.
Both the management team and supervisory board at Delivery Hero have provided unanimous endorsement for the acquisition proposal. They intend to advise shareholders to accept the terms, subject to their examination of the complete offer documentation.
Prior to announcing this bid, Uber maintained an ownership position of nearly 37% in Delivery Hero, including derivative instruments. With Prosus now committing to sell its ~17% holding, Uber’s combined economic interest climbs to approximately 53%.
Strategic Rationale Behind Uber’s Acquisition
This transaction centers on expanding Uber Eats’ presence across regions where Delivery Hero has established substantial market dominance. Delivery Hero operates Talabat throughout the Middle East, HungerStation across Saudi Arabia, PedidosYa spanning Latin America, and Baemin serving South Korea.
These represent geographic territories where Uber Eats maintains minimal or zero presence currently. Acquiring these operations would dramatically expand Uber’s international footprint within its food delivery division.
This strategic move reflects a broader industry trend toward consolidation among food delivery platforms worldwide, following years of intense competitive pressure and substantial capital expenditure.
Planned Asset Divestitures by Delivery Hero
To facilitate smoother regulatory approval processes, Delivery Hero has committed to selling its operations across 14 distinct markets prior to finalizing the Uber transaction.
This divestiture plan encompasses Yemeksepeti, the company’s Turkish operation, which will be transferred to investment firm SSW Partners.
These strategic asset sales represent essential conditions designed to navigate antitrust examination procedures successfully.
Uber has provided assurances to maintain Delivery Hero’s Berlin headquarters location and preserve its employee base through a minimum of 2029. Additionally, the company pledges to deploy €2 billion in German investments throughout the upcoming five-year period.
The deal is projected to reach completion during the second half of 2027, contingent upon shareholder ratification and regulatory authorization.
Among Wall Street analysts, sentiment toward UBER remains overwhelmingly positive. The stock holds a Strong Buy consensus rating on TipRanks, supported by 28 Buy recommendations alongside two Hold ratings.
The consensus price target reaches $107.28, suggesting approximately 47.6% potential appreciation from present trading levels. Year-to-date performance shows UBER declining 11.1%.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
