Uber Secures Board Approval for $15 Billion Acquisition of Delivery Hero
Uber's board has endorsed a $15 billion offer to acquire Delivery Hero, urging shareholders to vote in favor of the merger.
Delivery Hero's supervisory and management boards have approved Uber's $15 billion acquisition bid and recommended that shareholders endorse the deal. Both boards argued the price was fair and that the merger would benefit the company, its investors, employees and other stakeholders while spurring product innovation. If completed, Uber's delivery network would expand to twice its current size, creating one of the world's largest on-demand food platforms outside China and strengthening its competitive stance against DoorDash and Just Eat Takeaway.
Uber, already holding the largest share of Delivery Hero, requires a minimum acceptance of 50% plus one share of the outstanding capital. Major shareholder Prosus has agreed to dispose of its 17% holding, and Delivery Hero earlier arranged to sell businesses in 14 markets to SSW Partners for $1.6 billion. The deal follows a wave of consolidation in the sector, including Uber's purchase of Getir, Grab's acquisition of Foodpanda Taiwan, and DoorDash's purchase of Deliveroo.
Why it matters
The merger would reshape the global food-delivery market, creating a dominant player that could challenge existing rivals.
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