Key Highlights
- Acquisition negotiations between Uber and Germany-based Delivery Hero have reached an advanced phase, with a potential agreement expected within days.
- Delivery Hero has publicly acknowledged the advanced nature of discussions but refused to address reported offer valuations.
- Market analysts anticipate the transaction will price Delivery Hero significantly above its current €36 per share trading level.
- Shares of Delivery Hero surged over 5% following the announcement, while Uber experienced a nearly 3% decline.
- Earlier this year in May, Uber submitted a €33-per-share proposal and subsequently increased its ownership position to approximately 37%.
According to a Tuesday report from Bloomberg, Uber Technologies has entered advanced acquisition discussions with Germany’s Delivery Hero. Industry sources suggest an agreement could materialize within the current week.
In an official statement, Delivery Hero acknowledged the ongoing negotiations, characterizing them as being in an advanced phase. However, the company explicitly stated it would not address media speculation concerning potential offer pricing.
Uber stock experienced a nearly 3% decline on Tuesday in response to the acquisition news. Conversely, Delivery Hero shares climbed more than 5%, reaching €38.93 on Frankfurt’s stock exchange.
Industry observers expect any finalized agreement to value Delivery Hero substantially above its recent €36 per share market price. Uber’s initial May proposal had placed the company’s valuation at €33 per share, translating to approximately €10 billion ($11.38 billion) in total value.
According to Financial Times reporting, Uber previously presented a €38-per-share proposal to one of Delivery Hero’s major institutional investors, which was subsequently rejected.
Reuters sources indicate that Uber has expanded its equity position in Delivery Hero to nearly 37% from a previous 25% stake, purchasing the additional shares from co-investor Aspex Management.
Months of Persistent Acquisition Efforts
This potential acquisition represents the culmination of extended negotiations. Delivery Hero initially disclosed in late May that it had received a formal takeover proposal from Uber.
That preliminary offer was priced at €33 per share. The progression to advanced negotiations indicates Uber’s willingness to increase its bid to finalize the transaction.
Berlin-headquartered Delivery Hero manages food-delivery operations across numerous international markets. Bloomberg sources indicate that any completed merger would likely face intensive regulatory examination from competition authorities across multiple regions.
When approached by both Bloomberg and Reuters, Uber representatives declined to provide statements regarding the reported negotiations.
Financial Analysis and Market Position
Delivery Hero’s stock valuation has remained relatively suppressed compared to anticipated deal pricing. The recent €36 trading price falls below the €38-per-share offer that one significant shareholder previously declined.
A final transaction price exceeding €36 would deliver a meaningful premium to current Delivery Hero stockholders. The precise valuation remains undisclosed, as company officials have refused to comment on pricing matters publicly.
With its nearly 37% ownership stake, Uber has already established itself as one of Delivery Hero’s largest shareholders. This substantial position provides Uber with considerable leverage as formal deal negotiations progress.
Tuesday’s confirmation from Delivery Hero regarding advanced-stage talks represents the most explicit public validation to date that both parties are actively pursuing a completed transaction.
Uber maintained its no-comment stance when contacted by Reuters for this story.
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