A $14.8 billion bid from Uber to capture Germany's food delivery market

With the aim of creating a giant in the global food delivery sector, American company 'Uber' has submitted a bid of $14.8 billion to acquire German company 'Delivery Hero'. This move is expected to create the world's largest food delivery group outside of China, and it will significantly help Uber consolidate its power against American and European competitors like Just Eat and DoorDash.

Upon completion of this transaction, a massive network spanning 99 countries will be created, with its combined gross merchandise value estimated to reach $236 billion by 2025. Uber has proposed to pay €41.50 per share for 'Delivery Hero', which is a 9% increase over its closing price on Wednesday. Following this new proposal, 'Delivery Hero' shares on the Frankfurt stock exchange also rose by approximately 5.7%.

Uber, already a major shareholder in 'Delivery Hero', has stipulated that the acquisition must receive approval from at least 50% plus one share. The deal is expected to be completed by the second half of next year. As a step to mitigate potential future regulatory issues, 'Delivery Hero' has agreed to sell a portion of its business operating in 14 countries to American investment firm SSW Partners for €1.4 billion. Additionally, 'Prosus', another major shareholder, has also decided to sell its stake of nearly 17%.

Through this acquisition, the Uber Eats network will further expand across Europe, the Middle East, Asia, and Latin America. Major brands currently owned by 'Delivery Hero', such as foodpanda, Talabat, Glovo, and PedidosYa, which was founded in Berlin in 2011, are also set to join the Uber network through this deal. Under this transaction, Uber has pledged to invest €2 billion in Germany until 2031 and to maintain 'Delivery Hero's Berlin headquarters and its staff until at least 2029. Uber CEO Dara Khosrowshahi stated that the main objective of this merger is to add long-term value for both customers and shareholders.