Uber nears €12.5bn deal to buy Delivery Hero, FT reports

• Uber is expected to pay roughly €41 per share for Delivery Hero, which has a market value of about €11.6 billion
• To reduce antitrust concerns, Delivery Hero plans to split off and sell its Turkish unit Yemeksepeti and several European operations to an investment firm before the deal closes
• The deal follows months of speculation after Uber initially approached Delivery Hero in May with a lower offer of €38 per share

Summary: Uber Nears €12.5bn Acquisition of Delivery Hero

Key Transaction Details:

Uber is poised to acquire German food delivery company Delivery Hero in a deal valued at approximately €12.5 billion ($14.34 billion), according to the Financial Times. The proposed offer stands at roughly €41 per share, representing a premium to Delivery Hero's current market value of €11.6 billion. An announcement could come as early as Thursday, though terms and timing remain subject to change.

Strategic Rationale:

The acquisition would significantly expand Uber Eats' food delivery footprint across Europe, the Middle East, Asia, and Latin America, consolidating its position in the global delivery market.

Regulatory Considerations:

To address anticipated antitrust concerns stemming from operational overlap, Delivery Hero plans to divest certain assets before the deal closes. This includes selling its Turkish unit Yemeksepeti and several European operations to an investment firm, strategically reducing geographic overlap with Uber's existing operations.

Deal Background:

The current discussions follow months of speculation about Delivery Hero's future. Uber initially approached the company in May with a lower offer of €38 per share, indicating sustained interest and negotiation progress.

Market Context:

Both companies declined immediate comment on the reported transaction. The deal represents one of the largest consolidation moves in the food delivery sector, though regulatory approval remains a significant hurdle given the combined entity's market presence across multiple regions.

The acquisition, if completed, would mark a major strategic expansion for Uber while potentially reshaping competitive dynamics in the global food delivery industry.