Delivery Hero Board Approves Uber’s $15 Billion Acquisition Proposal

The Delivery Hero board has approved Uber’s proposal to purchase the company for $15 billion and is urging shareholders to back this decision, which aims to establish a leading global platform for on-demand food delivery.

Following extensive discussions, Delivery Hero’s management and supervisory boards concluded that the acquisition aligns with the best interests of the company, its shareholders, employees, and other stakeholders. They assessed the proposed price as “fair and adequate” and noted that the deal has the potential to substantially boost product innovation.

If this acquisition receives the necessary approvals, it would effectively double Uber’s presence in the global market, positioning its delivery service as one of the largest worldwide, second only to China. This move could also strengthen Uber’s competitive edge against rivals like DoorDash and Just Eat Takeaway.

Uber, already holding a significant interest in Delivery Hero, has established a minimum acceptance threshold of 50% plus one share of the overall outstanding share capital of Delivery Hero.

Additionally, Prosus, another key shareholder, has agreed to sell its 17% stake in Delivery Hero, as detailed in the announcement. Previously, Delivery Hero decided to exit operations in 14 markets where Uber Eats operates, selling these to the New York investment firm SSW Partners for $1.6 billion.

This merger is indicative of the broader trend of consolidation within the on-demand delivery sector. Over the past 18 months, Uber has also agreed to acquire Turkey’s Getir for $335 million, Grab aims to buy Delivery Hero’s Foodpanda in Taiwan for $600 million in cash, and DoorDash has announced plans to acquire the UK’s Deliveroo for $3.87 billion.