Uber nears deal to acquire Delivery Hero for nearly €12.5 billion

Ride-sharing and delivery firm Uber is in advanced talks to acquire German food delivery company Delivery Hero, according to a report by the Financial Times. The deal is said to value the target company at approximately €12.5 billion (around $73.5 billion USD).

Delivery Hero confirmed on July 14 that it was engaged in in-depth discussions with Uber regarding a potential takeover offer. Sources suggest the transaction could be announced as early as July 16, with Uber expected to offer around €41 per share, although final terms and timelines are still undecided.

This acquisition would significantly expand Uber Eats' delivery network across Europe, the Middle East, Asia, and Latin America. However, the two companies have overlapping operations in several markets, including at least four within the EU. To mitigate antitrust concerns, a proposed structure involves Delivery Hero divesting its Turkish subsidiary, Yemeksepeti, and several European assets to a US investment firm.

Uber has also paused plans to launch its food delivery service in five new European markets where Delivery Hero operates, such as Austria, Norway, and Greece. This move is seen as an effort to ease potential regulatory scrutiny from the EU and other competition authorities. The negotiations have been ongoing for several months, with Uber having increased its stake in Delivery Hero in recent months.

Uber previously approached the Delivery Hero board in May with an offer of €33 per share, a valuation of around €10 billion, which was considered too low by investors. Uber has since strategically increased its shareholding to nearly 25% of voting rights, a level that falls just below German thresholds for foreign investment review and is sufficient to block rival bids.

Delivery Hero has faced pressure from shareholders for strategic adjustments, and its co-founder and CEO announced in May that he plans to step down by March 2027.