Uber Eyes Global Expansion with $14.8 Billion Takeover Offer for Delivery Hero
Ride-hailing giant Uber Technologies (UT8.F, UBER.VI) is looking to expand its markets of operations through a takeover offer of 41.50 euros per share for Delivery Hero (DHER.F), valuing the German food delivery platform at $14.8 billion.Uber said Thursday the business combination agreement will be beneficial to consumers, merchants, couriers, and drivers. It expects the transaction todouble its presence in markets where it provides both mobility and delivery services to 58 from 34, and ultimately extend its global reach to 99 territories."By bringing our platforms together, we will extend affordable, reliable delivery to many millions more people in many of the world's most dynamic economies, while creating more opportunities for merchants and couriers. Together, we'll nearly double the number of markets where we offer both mobility and delivery services, scaling a proven platform that we believe will create significant long-term value for our customers and shareholders," said Uber Chief Executive Officer Dara Khosrowshahi.The deal excludes Delivery Hero business in 14 markets where Uber already has existing operations, including Norway, Sweden, Greece, Poland, Portugal and Spain. Delivery Hero separately agreed to divest businesses in these markets for $1.6 billion to New York-based investment firm SSW Partners.As part of its offer, Uber vowed to retain its target's headquarters and current workforce in Berlin until at least 2029. The offer also earmarked 2 billion euros for investments in Germany over the next five years.Uber secured commitment of support for its proposal from directors of the target. Technology investor Prosus (PRX.AS, PRX.JO), which owns a 16.8% stake in Delivery Hero through MIH Food Delivery Holdings, also committed to tendering all of its shares in the target under the offer.In early morning trading, Uber shares declined 1% in Frankfurt and Vienna, while Delivery Hero shares decreased nearly 3%.
