Delivery Hero board endorses Uber's $15B takeover offer
Delivery Hero's supervisory and management boards have recommended shareholders approve Uber's $15 billion takeover bid, a deal that would create one of the world's largest food delivery platforms.
Germany-based Delivery Hero's boards reviewed Uber's offer and concluded it serves the interests of the company, its shareholders, employees and other stakeholders. Management called the price "fair and adequate" and said the merger could speed up product innovation.
Uber was already Delivery Hero's largest shareholder before the offer. The ride-hailing company has set a minimum acceptance threshold of 50% plus one share of Delivery Hero's outstanding capital for the deal to proceed. Prosus, another major shareholder, has also agreed to sell its 17% stake in Delivery Hero.
Market impact
If completed, the acquisition would double Uber's global delivery footprint, making it one of the largest food delivery platforms outside China. It would also strengthen Uber's competitive position against DoorDash and Just Eat Takeaway.
Delivery Hero had previously agreed to sell its operations in 14 markets where Uber Eats already operates to New York-based investment firm SSW Partners for $1.6 billion.
The deal is the latest in a wave of consolidation sweeping the on-demand delivery industry. Over the past 18 months, Uber agreed to buy Turkey's Getir for $335 million, Grab announced plans to acquire Delivery Hero's Foodpanda business in Taiwan for $600 million in cash, and DoorDash agreed to pay $3.87 billion for the UK's Deliveroo.
