Uber (UBER.US) plans to acquire German takeout platform Delivery Hero, global takeout industry integration continues to heat up

The Zhitong Finance App learned that, according to people familiar with the matter, online car-hailing giant Uber (UBER.US) is in in-depth negotiations with the German takeaway platform Delivery Hero on the acquisition, and the two sides are likely to reach an agreement as soon as this week.

People familiar with the matter said Uber hopes to finalize a deal with Delivery Hero as soon as possible. If the deal is finalized, Delivery Hero's valuation is expected to be significantly higher than its recent transaction price of around €36 per share.

Since this year, Delivery Hero's stock price has increased by about 62%. Currently, the company's market value is about 11.2 billion euros (about 12.8 billion US dollars). Uber currently holds about 24.99% of Delivery Hero's shares and has further increased its economic equity to about 36.8% through derivatives.

According to information, Uber previously proposed a purchase offer of 33 euros per share, but the market generally believes that in order to facilitate the deal, Uber needs to further increase its offer.

In addition to Uber, Dutch internet investment company Prosus NV is also an important shareholder of Delivery Hero. Since Delivery Hero's business covers more than 60 markets around the world and overlaps with Uber's business in Europe and parts of the Middle East, it is expected to face scrutiny by antitrust regulators in multiple jurisdictions around the world if the deal is reached.

At the same time, people familiar with the matter said that negotiations between the two sides are still ongoing, and there is a possibility that the deal will be postponed or even finally announced. Uber and Prosus both declined to comment, and Delivery Hero has yet to respond to media requests for comment.

In recent years, under pressure from shareholders, Delivery Hero has been advancing strategic assessments and seeking to optimize the asset portfolio. Hedge fund Aspex Management, one of the company's shareholders, previously successfully pushed founder Niklas Östberg out of office and continued to call for the company to sell more assets to enhance shareholder returns.

Meanwhile, the global takeout industry is entering a phase of consolidation. As rapid growth dividends subsided during the pandemic, industry competition intensified, and growth slowed, major platforms expanded their market share through mergers and acquisitions.

Last year, the US takeaway platform DoorDash (DASH.US) agreed to acquire the British takeaway company Deliveroo Plc; Prosus completed the acquisition of Just Eat Takeaway.com NV, further accelerating industry integration.

Additionally, some of Delivery Hero's assets have attracted interest from other potential buyers. Earlier, people familiar with the matter revealed that DoorDash and Saudi instant delivery startup Ninja have both expressed their intention to acquire some or all of Delivery Hero's Middle East business assets.

Analysts pointed out that during the COVID-19 pandemic, the takeaway industry ushered in explosive growth due to lockdown measures, and major platforms rapidly expanded and increased investment. However, as restaurants and supermarkets resume operations, the industry's growth rate has clearly slowed. At the same time, many countries have strengthened supervision over the protection of the rights and interests of gig workers on platforms, which has also boosted the employment costs of enterprises and further encouraged the industry to improve operational efficiency through mergers and acquisitions.