Uber raises stake in Delivery Hero in $318 million deal

Uber has taken a significant step in the food delivery sector by agreeing to acquire an additional 4.5% stake in Delivery Hero, a leading German food delivery service. This strategic move involves a financial outlay of approximately 270 million euros, equivalent to $318 million, which will be paid to Prosus, the largest shareholder in Delivery Hero. The purchase price is set at 20 euros per share, which is notably lower than Delivery Hero's closing price of the previous day, following a 7% surge in its stock. Despite this, the offer represents a 22% premium compared to the company's average share price over the past month, as highlighted by Prosus. This acquisition follows Prosus's earlier attempts to expand its influence in the European food delivery market, including a bid for Just Eat Takeaway.com amounting to 4.1 billion euros. However, this plan faced regulatory challenges from the European Commission, which indicated that it would only approve the acquisition if Prosus significantly reduced its stake in Delivery Hero. Prosus has reaffirmed its commitment to divesting the necessary portion of its shares in Delivery Hero as mandated by regulatory authorities, emphasizing its dedication to compliance in the evolving landscape of food delivery services. This development marks a pivotal moment in the ongoing competition within the food delivery industry.