Uber increases its investment in Delivery Hero with a $318 million deal

• Uber will pay 20 euros per share for the additional 4.5% stake, totaling approximately $318 million
• The European Commission required Prosus to significantly reduce its Delivery Hero stake as a condition for approving its 4.1 billion euro Just Eat acquisition
• Prosus remains committed to selling the required portion of its Delivery Hero stake within the regulatory timeframe

Summary

Key Transaction Details:

Uber has agreed to acquire an additional 4.5% stake in Delivery Hero from Prosus, the food delivery company's largest shareholder, for approximately €270 million ($318 million). The purchase price is set at €20 per share.

Main Companies Involved:

• Uber: Increasing its investment position in the European food delivery market through this expanded stake
• Delivery Hero: German food delivery platform receiving increased investment from Uber
• Prosus: Dutch technology investment company selling down its holdings

Strategic Context:

The transaction is directly linked to regulatory requirements imposed by the European Commission. Prosus previously announced a €4.1 billion bid to acquire European food delivery company Just Eat. However, EU regulators conditioned their approval on Prosus significantly reducing its stake in Delivery Hero to address competition concerns.

Market Implications:

This deal reflects ongoing consolidation pressures in the European food delivery sector, where regulatory authorities are closely scrutinizing major acquisitions to prevent monopolistic practices. Prosus confirmed its commitment to divesting the required portion of its Delivery Hero stake within the mandated timeframe to secure approval for the larger Just Eat acquisition.

The transaction strengthens Uber's position in the competitive global food delivery market while allowing Prosus to meet regulatory obligations and proceed with its strategic acquisition of Just Eat. The deal value of $318 million represents a modest but strategically significant expansion of Uber's exposure to Delivery Hero's operations across Asia, Europe, and the Middle East.