Delivery Hero has confirmed publicly that Uber has proposed buying the German food delivery company for 33 euros per share, in line with earlier takeover reports.
Our previous note outlined that Uber’s move to acquire Delivery Hero was likely aimed at expanding its international footprint.
Uber’s move to acquire Delivery Hero could be an attempt to expand Uber Eats’ global footprint and improve its competitive position against DoorDash outside the US.
Delivery Hero shares in Frankfurt are up nearly 50% this year and have more than doubled from their March lows of around 15 euros. Uber shares were marginally lower in early afternoon trading.
The Company remains fully focused on executing its strategic review process. Further updates will be provided as required or appropriate.
Recall earlier reports that stated Uber built a 19.5% stake in Delivery Hero, plus 5.6% option exposure, as it explored takeover opportunities.
On Monday, Uber disclosed that it owns 19.5% of Delivery Hero, plus an additional 5.6% through options. The position was built with the help of Morgan Stanley traders, as disclosed by people familiar with the matter.
Delivery Hero operates in more than 60 countries, giving Uber exposure to markets where it is either underscaled or trailing its competitors.
“While Uber’s ultimate intentions on further stake-building remain unclear, we view the move as a clear endorsement of the strategic attractiveness of Delivery Hero’s asset base for Uber,” JPMorgan analysts wrote in a note.
Earlier, Uber said it “currently” has no intention of increasing its stake in Delivery Hero beyond 30%.
