Delivery Hero shares surged over 10% on Monday morning after reports emerged that Uber is considering an improved takeover bid for the German food delivery company, following a previously rejected offer of €33 per share, which would value Delivery Hero at over €10 billion [1]. Delivery Hero confirmed it had received the €33 per share offer from Uber, but the proposal was rebuffed over the weekend, according to the Financial Times [1]. The company stated it remains focused on its strategic review process and will provide further updates as appropriate [1].
Uber's board reportedly convened on Saturday to discuss a higher bid after a €38 per share offer was rejected by one of Delivery Hero's major shareholders [1]. Last week, Delivery Hero disclosed that Uber had increased its stake to approximately 19.5% of issued capital, up from about 7%, making Uber the largest shareholder in the company [1].
The market reaction was significant: Delivery Hero shares opened 10.5% higher on the news, while Uber's shares fell 2.4% on Friday following the developments [1]. If successful, the deal would mark further consolidation in the food delivery sector, following recent acquisitions such as DoorDash's purchase of Deliveroo and Prosus's acquisition of Just Eat last year [1].
Delivery Hero emphasized its ongoing strategic review and indicated that further updates would be provided as necessary, suggesting that negotiations or strategic decisions are still underway [1].
CONCLUSION
Delivery Hero's stock experienced a sharp rise as Uber considers a renewed takeover bid, highlighting ongoing consolidation in the food delivery industry. The market responded positively for Delivery Hero but negatively for Uber, reflecting investor sentiment around the potential deal. Delivery Hero's continued strategic review signals that further developments may follow.