Delivery Hero Board Backs Uber’s $15 Billion Takeover Offer
The management and supervisory boards of Delivery Hero have formally signed off on Uber’s $15 billion takeover proposal and recommended that shareholders accept the deal. If completed, the transaction will establish one of the world’s largest on-demand food delivery networks.
What Happened
Delivery Hero’s leadership reviewed the $15 billion acquisition offer from Uber and determined it to be in the best interests of the company, its shareholders, employees, and other stakeholders. The governing boards concluded that the proposed price was fair and adequate, noting that the merger carries the potential to accelerate product innovation.
Uber, which is already Delivery Hero’s largest shareholder, established a minimum acceptance threshold of 50% plus one share of Delivery Hero’s outstanding share capital. In parallel, major shareholder Prosus agreed to sell its 17% stake in the business. Prior to this, Delivery Hero had agreed to divest operations in 14 markets where Uber Eats already has a presence to New York-based investment firm SSW Partners for $1.6 billion.
Key Highlights
- Offer Valuation: Uber has put forward a $15 billion acquisition proposal for Delivery Hero.
- Board Recommendation: Delivery Hero’s management and supervisory boards backed the bid, deeming the terms fair and adequate.
- Acceptance Condition: The transaction requires a minimum acceptance threshold of 50% plus one share of Delivery Hero’s share capital.
- Shareholder Agreement: Prosus agreed to divest its 17% holding in Delivery Hero.
- Market Divestiture: Delivery Hero previously arranged to sell operations across 14 overlapping Uber Eats markets to SSW Partners for $1.6 billion.
- Market Context: The deal follows several major sector moves over the past 18 months, including Uber’s $335 million deal for Getir, Grab’s $600 million cash purchase of Foodpanda Taiwan, and DoorDash’s $3.87 billion takeover of Deliveroo.
Why This Matters
Securing Delivery Hero would double Uber’s global operational footprint and position its delivery platform as one of the biggest worldwide outside of China. The expanded presence could also place Uber in a stronger competitive position against rival platforms including DoorDash and Just Eat Takeaway, while reinforcing an ongoing consolidation phase across the on-demand delivery sector.
What to Watch Next
The transaction now depends on Delivery Hero shareholders voting on the proposal, with Uber needing to achieve its required threshold of 50% plus one share of outstanding capital to proceed.
Frequently Asked Questions
What are the terms of Uber’s bid for Delivery Hero?
Uber offered $15 billion to acquire Delivery Hero, conditioning the transaction on reaching a minimum acceptance threshold of 50% plus one share of the company’s outstanding share capital.
Why did Delivery Hero’s boards endorse the deal?
The supervisory and management boards deemed the offer fair and adequate, concluded it served the best interests of stakeholders, and highlighted its potential to accelerate product innovation.
Has any major shareholder agreed to sell?
Yes. Prosus, a major investor in Delivery Hero, agreed to tender its 17% stake as part of the transaction.
Source: Delivery Hero investor announcements and TechCrunch reporting.