BY EMMANUEL OGBONNA
Ride-hailing and food delivery giant Uber Technologies is considering increasing its takeover offer for German food delivery group Delivery Hero after a major shareholder rejected an earlier proposal that valued the company at more than 11.5 billion euros, according to a report published Sunday by the Financial Times.
The report said Uber’s board convened on Saturday to review the status of the proposed acquisition and discuss possible next steps after resistance emerged from key investors. People familiar with the matter said the discussions focused on whether the U.S.-based company should improve its offer in an effort to secure support for a deal that could reshape the global food delivery market.
Delivery Hero confirmed Saturday that it had received a takeover approach from Uber valuing the company at 33 euros per share. The proposal marked one of the most significant consolidation moves in the delivery industry in recent years as companies face increasing competition, rising operational costs and pressure to improve profitability.
Uber Chief Executive Dara Khosrowshahi reportedly traveled to Oslo earlier this week to meet Delivery Hero supervisory board chair Kristin Skogen Lund, where he presented the 33-euro-per-share proposal in person. The meeting underscored the seriousness of Uber’s interest in acquiring the Berlin-based company, which operates food delivery businesses across Europe, Asia, the Middle East and Latin America.
According to the Financial Times report, Uber later approached one of Delivery Hero’s largest shareholders with an improved offer of 38 euros per share in recent days. That proposal was also rejected, signaling that major investors believe the company is worth significantly more.
The 38-euro offer represented a premium of roughly 15% compared with Delivery Hero’s closing share price on Friday. Despite the premium, several shareholders reportedly indicated they would only support a transaction at a price exceeding 40 euros per share.
The takeover discussions have intensified speculation about a broader wave of consolidation in the food delivery industry, where companies have struggled with slowing growth after the pandemic-era boom in online ordering. Investors have increasingly pushed delivery firms to focus on profitability, market share and operational efficiency instead of rapid expansion.
Delivery Hero has long been viewed as one of the sector’s most strategically valuable assets because of its extensive international footprint and strong presence in emerging markets. An acquisition by Uber would significantly expand Uber Eats’ reach in regions where Delivery Hero already holds dominant positions.
The report also said rival delivery company DoorDash has been exploring its own interest in Delivery Hero. DoorDash is said to have contacted shareholders to gauge sentiment around a potential transaction, though it has not acquired any shares in the company.
The possibility of competing interest from DoorDash could complicate Uber’s efforts and potentially drive the valuation higher if a bidding contest emerges. Analysts have noted that Delivery Hero’s global network and customer base make it an attractive acquisition target for major delivery platforms seeking scale and stronger international positioning.
Neither Uber nor Delivery Hero immediately issued further public comment regarding the reported negotiations or the possibility of a revised offer. Investors are now closely watching whether Uber decides to return with a higher bid in an attempt to win over skeptical shareholders and secure one of the largest deals the food delivery sector has seen in years.
Original article
Comments