Uber's €33/Share Bid for Delivery Hero Confirmed

Delivery Hero, the Berlin-based food-delivery giant, has confirmed it received a takeover offer from Uber at €33 per share, according to a statement released Saturday. The bid, which values the company at approximately €8.6 billion, represents a marginal discount of 1.76% from Delivery Hero's closing price on Friday, as per LSEG data.

Strategic Review Underway

The confirmation comes amid a broader strategic review initiated by Delivery Hero's board, following pressure from major shareholders. Last week, the company announced that CEO Niklas Oestberg would step down, a move that had been anticipated after several large investors called for a reassessment of the company's direction. Delivery Hero reiterated that it remains fully focused on executing its strategic review, but declined to provide additional details on Uber's proposal.

Uber's Growing Stake

Uber's interest in Delivery Hero is not new. The U.S. ride-hailing and delivery giant had already increased its stake to about 19.5% of issued capital from roughly 7%, making it the largest shareholder. That stake, worth around €1.7 billion, signaled Uber's intent to consolidate its position in the European food-delivery market. The full takeover offer, first reported by Bloomberg on Friday, caused Uber shares to fall 1.6% on the news.

Market Implications

The proposed acquisition would create a dominant player in the global food-delivery space, combining Uber Eats' strong presence in the Americas and parts of Europe with Delivery Hero's extensive network across Asia, the Middle East, and Latin America. However, regulatory hurdles are likely, given the combined market share in several European countries. Analysts have noted that antitrust authorities may require divestitures to approve the deal.

For Delivery Hero shareholders, the offer provides a near-term exit at a price close to recent trading levels. However, some investors may hold out for a higher bid, especially if rival suitors emerge. The strategic review is expected to conclude within the coming weeks, with the board weighing the Uber offer against other potential alternatives.

Industry Context

The food-delivery sector has seen a wave of consolidation as companies seek economies of scale and profitability. Uber's bid for Delivery Hero follows a period of intense competition and rising costs, with many players struggling to achieve sustainable margins. If successful, the deal would rank among the largest in the industry, reshaping the competitive landscape.

1. Delivery Hero confirmed Uber's €33/share takeover offer, a discount to the last close.
2. Uber had already built a 19.5% stake, becoming the largest shareholder.
3. CEO Niklas Oestberg will step down amid the strategic review.
4. Regulatory scrutiny is expected, potentially requiring asset sales.
5. The outcome will significantly impact the global food-delivery market.

Sources: CNBC - Delivery Hero confirms takeover offer from Uber