Uber has proposed acquiring Delivery Hero in a deal that would value the German delivery company at around €10 billion (or US$11.6 billion), in an attempt to reinforce competition with DoorDash outside the United States.
Delivery Hero received a proposal from Uber of €33 per share and “remains fully focused on executing its strategic review process,” the Berlin-based company said in a statement this Saturday (23). That price is three cents higher than Delivery Hero’s closing share price on Thursday, the day before Bloomberg News reported the talks.
Uber, which owns 20% of Delivery Hero, would have to pay around €8 billion under these conditions. The American company also has options to acquire another 5.6% of the shares.
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Delivery Hero has been carrying out a strategic review of its assets following pressure from shareholders. The delivery sector is going through a process of global consolidation, driven by slowing growth and strong competition, and several companies in the segment in Europe have been the target of acquisitions.
DoorDash, the leader in the US restaurant food delivery market, reached a deal to buy the UK’s Deliveroo last year. Months earlier, Prosus announced plans to buy Just Eat Takeaway.com in the Netherlands.
