Uber Technologies Inc. has launched a public takeover offer for the German food delivery company Delivery Hero SE in a deal valuing the business at $14.8 billion. The acquisition would create the world's largest food-delivery firm outside of China and significantly expand the US ride-hailing company's global food delivery network.
Uber has offered to pay shareholders €41.50 a share in cash, which is a 26% improvement over a previous bid of €33 made in May. After accounting for its previous purchases of a quarter of Delivery Hero’s shares, Uber will pay $13.7 billion. Delivery Hero has confirmed it was in advanced negotiations and now supports the takeover offer.
The agreement combines Uber Eats with food delivery brands in 99 countries and expands the reach of Uber's taxi service. As part of the deal, 14 markets have been carved out to a New York firm to address competition concerns.
This move comes as Uber seeks to strengthen its footprint in international markets. The global food delivery sector is currently consolidating, a trend driven by heavy competition and slowing growth.