Uber and DoorDash sound out investors for Delivery Hero bid
American food delivery rivals seek to acquire stake in the German group as they consider a takeover
Uber and DoorDash have held exploratory talks with investors in Delivery Hero ahead of a possible takeover bid, setting up a battle for the German food delivery group.
The two companies have both engaged in discussions about acquiring multiple investors’ stakes in Delivery Hero in recent days, according to three people familiar with the matter.
Several investors have indicated they would seek a price above €40 per share, which would be a 19 per cent premium on Delivery Hero’s closing price on Friday, potentially valuing the company at about €13bn, the people said.
It was not clear what price might ultimately be agreed or the final terms of any deal.
Uber chief executive Dara Khosrowshahi flew into Oslo this week to meet the chair of Delivery Hero’s supervisory board Kristin Skogen Lund, several people said. He is understood to have floated a price of about €33 per share but was rebuffed, they added.
Tony Xu, DoorDash’s chief, has also made contact with Lund, according to two people familiar with the matter.
Uber disclosed on Monday that it owned 19.5 per cent of Delivery Hero and held a further 5.6 per cent in derivatives.
Morgan Stanley is working on Uber’s bid, the people added. The bank disclosed in regulatory filings on Friday that it had a 27 per cent interest in Delivery Hero, primarily through equity swaps.
Delivery Hero’s board is considering a full sale or series of deals that would spin off the group’s Middle East and Korea divisions, the people said.
The company’s founder and chief executive Niklas Östberg said last week that he would leave by March 2027 after years of shareholder pressure for change.
In March activist investor Aspex Management, which holds a 14.6 per cent stake in Delivery Hero, called on the company to streamline operations, speed up asset sales and replace Östberg.
Both suitors may yet decide to abandon their pursuit and any transaction could be blocked by regulators, the people added.
One person said Uber’s talks were exploratory and it had not decided whether to pursue a takeover.
The global food delivery market is consolidating, with DoorDash’s £2.9bn takeover of Deliveroo and the €4.1bn acquisition of Just Eat Takeaway by Prosus last year.
Uber acquired €270mn-worth of shares in Delivery Hero from Prosus in April, giving it a 7 per cent stake. The Dutch investment group was previously Delivery Hero’s largest shareholder but has been reducing its holding to comply with EU antitrust requirements linked to its takeover of Just Eat.
Uber described the deal as “opportunistic” at the time, while Prosus chief executive Fabricio Bloisi previously said the EU was at risk of becoming “irrelevant in terms of technology” due to its antitrust rules.
Prosus, which still holds a 16.8 per cent stake in Delivery Hero, has since criticised European regulators for forcing it to reduce its stake, thereby creating the opportunity for a full American takeover.
DoorDash is primarily interested in the group’s Middle East business which includes Talabat and HungerStation, according to two people familiar with the matter. It is also seeking Delivery Hero’s Turkish arm Yemeksepeti but has not ruled out a bid for the whole company, the people added.
Uber’s existing stake represents an obstacle, giving it influence over capital increases, acquisitions and changes to the company’s constitutional documents.
Uber pointed to disclosures the company had previously made that said it had “no intent to acquire 30 per cent or more of [Delivery Hero’s] voting rights”. A stake of that size would trigger an obligation to make a takeover offer under German rules.
But in its company filings, Uber left open the possibility of increasing or reducing its stake in the future.
Uber is expanding its food delivery reach in Europe, having announced it would enter seven new markets this year.
Uber declined to comment further. DoorDash and Morgan Stanley declined to comment. Delivery Hero did not immediately respond to a request for comment.
In a statement released after this story was published, Delivery Hero said that it “confirms that Uber Technologies reached out with an indicative proposal of €33 per share in respect of a potential takeover offer to all shareholders”.
“The company remains fully focused on executing its strategic review process. Further updates will be provided as required or appropriate,” Delivery Hero said.