Key Highlights
- Uber has purchased an additional 4.5% ownership in Delivery Hero valued at approximately $318 million (270 million euros)
- The transaction was executed at 20 euros per share — lower than Delivery Hero’s Thursday closing price but representing a 22% premium over the one-month volume-weighted average
- Delivery Hero shares surged approximately 8.5% following the announcement
- Prosus is divesting the stake to comply with European Commission requirements related to its 4.1 billion euro acquisition of Just Eat Takeaway.com
- Prosus’s ownership in Delivery Hero has decreased to approximately 21% from roughly 27% at the time of the Just Eat transaction announcement
Uber is expanding its ownership stake in Delivery Hero through a $318 million transaction to acquire an additional 4.5% from Prosus, the German food delivery company’s largest investor.
The transaction was executed at 20 euros per share. While this pricing sits below Delivery Hero’s Thursday closing level following a 7% increase, Prosus has indicated the price reflects a 22% premium compared to the one-month volume-weighted average.
Delivery Hero shares jumped approximately 8.5% on the announcement. Uber shares gained around 0.8%.
This marks Uber’s second investment in Delivery Hero. In 2024, the ride-hailing giant acquired $300 million worth of freshly-issued Delivery Hero shares. Friday’s transaction represents an expansion of that initial position.
The context surrounding this deal is crucial. Prosus announced plans last year to acquire Just Eat Takeaway.com in a 4.1 billion euro transaction. The European Commission granted conditional approval — requiring Prosus to significantly reduce its Delivery Hero ownership.
At the time of the Just Eat announcement, Prosus controlled approximately 27% of Delivery Hero. That figure has now declined to roughly 21%. The company has stated it remains “committed to selling the relevant portion of its stake within the required timeframe.”
This suggests additional share sales are likely on the horizon.
European Competition Policy Under Review
The transaction comes during a pivotal period for European merger regulation. The Financial Times published a report this week indicating the European Commission is exploring potential changes to its approach toward major corporate consolidations.
The Commission is reportedly evaluating whether to give greater weight to considerations such as “innovation, investment and resilience of the internal market” during merger reviews.
European competition commissioner Teresa Ribera informed the FT that the EU aims to promote “pro-competitive mergers” that enable European companies to maintain competitive positions globally.
Prosus CEO Fabricio Bloisi has been outspoken on this issue. In a January interview with CNBC, he argued that large-scale mergers are essential for global competitiveness, suggesting that Europe’s history of blocking consolidation has hindered regional growth.
“We have to change that to create really big companies in Europe,” Bloisi stated.
Transaction Details
Uber is acquiring the 4.5% stake at 20 euros per share. Prosus will receive total gross proceeds of approximately 270 million euros, equivalent to $318 million.
Delivery Hero stock had already experienced significant upward momentum prior to the deal confirmation, climbing roughly 7% during Thursday’s session. The Friday surge of 8.54% extended those gains, with DHER-FF adding 1.69 euros.
Prosus (PRX-NL) shares were trading approximately 0.4% higher at the time of reporting.
The Just Eat acquisition awaits final regulatory approval. Prosus must continue reducing its Delivery Hero holdings to meet the Commission’s stipulated conditions.
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