Uber Technologies has proposed a takeover of German food delivery service Delivery Hero SE at $39.29 per share, valuing the Berlin-based company at around €10 billion as it seeks to expand its global delivery footprint.
Delivery Hero confirmed it received a non-binding acquisition offer from Uber that values its shares at 33 euros each, equivalent to about $38.29 to $39.29 per share based on recent exchange rates.
The offer represents a discount of roughly 1.7% to Delivery Hero's last closing price before the announcement, according to data cited by LSEG and reported by multiple financial outlets, according to Reuters.
In its statement, the company said it is reviewing the proposal as part of an ongoing strategic review but stressed there is no certainty that a definitive agreement will be reached.
Uber's approach follows a rapid buildup of its stake in Delivery Hero over recent months, which has turned the U.S. company into the German group's largest shareholder.
In April, Uber agreed to buy an additional 4.5% stake from Prosus for around €270 million at 20 euros per share, lifting its holding to about 7% at that time. Delivery Hero later disclosed that Uber had raised its ownership to roughly 19.5% of issued capital, a position valued at about €1.7 billion based on Reuters calculations.
The proposed takeover would bring together Uber's "Uber Eats" business and Delivery Hero's extensive food delivery operations across Europe, the Middle East, Asia, and Latin America.
Analysts note the combination would strengthen Uber's ability to compete with "DoorDash" and "Just Eat Takeaway" in markets outside the United States by expanding its logistics network and merchant base.
According to Bloomberg reporting, Uber's €33-per-share proposal implies an overall equity value of roughly €10 billion for Delivery Hero.
Regulatory approval is expected to be a key consideration, particularly in the European Union, where competition authorities have closely scrutinized consolidation in the online food delivery sector.
Prosus, a major technology investor and former large shareholder in Delivery Hero, has previously adjusted its positions in the sector to address EU concerns over market concentration.
Delivery Hero said it remains focused on executing its current strategic review and will update investors if negotiations with Uber progress to formal talks or binding terms, as per Yahoo Finance.
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