In a significant move to bolster its global food-delivery operations, Uber Technologies is set to acquire Delivery Hero, a prominent company based in Germany. The deal, valued at $14.8 billion, will enable Uber to expand its reach across 50 international markets. As part of the agreement, Uber plans to purchase Delivery Hero’s core global business by offering €41.50, equivalent to $47.60, per share. Additionally, the agreement involves the acquisition of shares owned by major investor Prosus.
Investment firm SSW Partners will play a notable role in this transaction by acquiring operations in 14 specific markets for around $1.6 billion. These holdings include businesses situated in Austria, Norway, Spain, and Sweden. SSW intends to sell these assets separately, further shaping the competitive landscape in these regions.
The acquisition is occurring against the backdrop of a consolidating global food-delivery industry, which saw a surge in growth during the Covid-19 pandemic. To maintain a competitive edge, major companies in the sector are increasingly resorting to mergers and acquisitions. This strategic move by Uber is part of a broader effort to enhance its international standing amid intensified competition.
In recent years, Uber has actively pursued various strategies for expanding overseas, while its competitors have also been making significant strides in the food-delivery market. Delivery Hero, under pressure from investors to restructure, had been conducting a strategic review in light of demands for asset sales and reorganization.
This acquisition is anticipated to considerably enhance Uber’s position in the global food-delivery market, providing the company with a stronger foothold and the ability to better compete on the international stage.