Uber has agreed to purchase an additional 4.5% stake in German food delivery company Delivery Hero from its largest shareholder, Prosus, in a deal valued at approximately 270 million euros ($318 million) [1]. Uber will pay 20 euros per share, a price below Delivery Hero's Thursday closing price after a 7% rally, but representing a 22% premium to the one-month average share price, according to Prosus [1].
This transaction is part of Prosus's efforts to reduce its stake in Delivery Hero, a move required by the European Commission to clear the way for Prosus's proposed 4.1 billion euro acquisition of Just Eat Takeaway.com, which faced regulatory scrutiny last year [1]. Following the sale, Prosus's ownership in Delivery Hero drops to around 21%, down from approximately 27% when the Just Eat deal was announced [1]. Prosus stated it remains committed to selling the necessary portion of its stake within the required timeframe [1].
Uber initially invested in Delivery Hero in 2024 by purchasing $300 million of newly-issued shares [1]. The deal comes amid a shifting regulatory landscape in Europe, with the European Commission reportedly considering relaxing merger rules to prioritize innovation, investment, and market resilience [1]. Europe's competition commissioner, Teresa Ribera, indicated the bloc aims to encourage 'pro-competitive mergers' to help European firms remain globally competitive [1].
Prosus CEO Fabricio Bloisi has previously criticized Europe's restrictive approach to mergers, arguing that larger consolidations are necessary for European companies to compete on a global scale [1].
CONCLUSION
Uber's increased investment in Delivery Hero and Prosus's stake reduction mark significant moves in the European food delivery sector, driven by regulatory requirements and shifting merger policies. The transaction underscores ongoing consolidation efforts and signals potential changes in the EU's approach to large-scale mergers.