Key Takeaways
- Uber has purchased an additional 4.5% ownership in Delivery Hero for approximately $318 million (270 million euros)
- The transaction was priced at 20 euros per share — a discount to Thursday’s closing price but representing a 22% premium over the one-month trading average
- Delivery Hero shares surged approximately 8.5% following the announcement
- The sale by Prosus is mandated by EU regulators as a condition for approving its 4.1 billion euro acquisition of Just Eat
- Prosus’s stake in Delivery Hero has decreased to approximately 21% from roughly 27% when the Just Eat transaction was initially announced
Uber is expanding its investment in Delivery Hero through a $318 million transaction to acquire an additional 4.5% ownership stake from Prosus, the German delivery platform’s primary shareholder.
The transaction was executed at 20 euros per share. While this represents a discount to Delivery Hero’s Thursday closing price following a 7% rally, Prosus confirmed it reflects a 22% premium compared to the stock’s one-month volume-weighted average price.
Delivery Hero shares jumped approximately 8.5% on the announcement. Uber stock gained around 0.8%.
This marks Uber’s second investment in Delivery Hero. The rideshare giant initially purchased $300 million worth of newly-issued Delivery Hero shares in 2024. Friday’s transaction represents a secondary market purchase and follow-on investment.
The context surrounding this deal is critical. Prosus announced its intention to acquire Just Eat Takeaway.com for 4.1 billion euros last year. The European Commission agreed to approve the acquisition — but imposed a condition requiring Prosus to significantly reduce its Delivery Hero holdings.
When the Just Eat acquisition was first announced, Prosus controlled approximately 27% of Delivery Hero. That stake has now been reduced 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 stake sales could be forthcoming.
European Competition Policy Under Review
The transaction occurs during a pivotal period for European merger regulation. The Financial Times reported earlier this week that the European Commission is evaluating potential reforms to its large merger review framework.
According to reports, the Commission is considering placing greater emphasis on criteria such as “innovation, investment and resilience of the internal market” during its assessment processes.
Teresa Ribera, Europe’s competition commissioner, told the FT that the EU aims to promote “pro-competitive mergers” that enable European companies to maintain competitive positions in global markets.
Prosus CEO Fabricio Bloisi has been outspoken about this issue. In a January interview with CNBC, he argued that large-scale mergers are essential for global competitiveness, and that Europe’s history of blocking consolidation has disadvantaged the region.
“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 gross proceeds of approximately 270 million euros, equivalent to $318 million.
Delivery Hero stock had already experienced significant upward movement prior to the deal’s confirmation, climbing approximately 7% during Thursday’s trading session. The Friday surge of 8.54% extended those gains, with the DHER-FF ticker advancing 1.69 euros.
Prosus (PRX-NL) traded approximately 0.4% higher at the time of reporting.
The Just Eat acquisition continues to await final regulatory approval. Prosus will be required to continue reducing its Delivery Hero position to meet the Commission’s stipulated conditions.
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