Delivery Hero board backs Uber’s $15B takeover bid

In Brief

Delivery Hero’s board has signed off on Uber’s $15 billion takeover offer and recommended shareholders approve the deal, which would create one of the largest on-demand food delivery platforms in the world.

After reviewing the offer, Delivery Hero’s supervisory and management boards said it was in the best interests of the company, its shareholders, employees, and other stakeholders. The boards also deemed that the price was “fair and adequate” and said the deal had the “potential to accelerate product innovation.”

The deal, if approved, would double Uber’s global footprint and make its delivery platform one of the largest in the world outside of China. It could also put Uber in a better position to compete with DoorDash and Just Eat Takeaway.

Uber, which was already the largest shareholder in Delivery Hero, set a minimum acceptance threshold of 50%, plus one share of Delivery Hero’s outstanding share capital.

Prosus, another major shareholder, has agreed to sell its 17% stake in Delivery Hero as well, according to the announcement. Delivery Hero previously agreed to sell its businesses in 14 markets where Uber Eats already operates to New York-based investment firm SSW Partners for $1.6 billion.

The tie-up is the latest example of consolidation in the on-demand delivery industry. In the past 18 months, Uber agreed to acquire Turkey-based Getir for $335 million, Grab said it would buy Delivery Hero’s Foodpanda business in Taiwan for $600 million in cash, and DoorDash said it would pay $3.87 billion for the U.K.’s Deliveroo.

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