Uber moves to buy Delivery Hero for $14.8bn

Uber Technologies (UBER) has entered into a signed agreement to acquire Berlin-based food-delivery company Delivery Hero (DHERd) for €41.50 per share. The offer implies an equity value of about $14.8 billion, or approximately $13.7 billion after accounting for Uber’s (UBER) existing stake in the company. The move would significantly expand Uber’s footprint in the global food-delivery market.

The takeover proposal has received backing from Delivery Hero’s corporate leadership. The company’s Management Board and Supervisory Board unanimously welcome and support the offer in principle and intend to recommend that shareholders tender their shares, subject to their review of the formal offer document.

A key element of the transaction is the support of Delivery Hero’s major shareholder Prosus (PRXa). Prosus (PRXa) has given an irrevocable commitment to tender its entire holding, which represents roughly 17% of Delivery Hero’s outstanding shares. This agreement secures a substantial portion of the equity needed for Uber’s offer to succeed.

The commitment from Prosus provides early visibility on shareholder participation and underscores the scale of investor backing for the proposed deal. With one of the largest shareholders already aligned, attention now shifts to the response from the broader shareholder base once the offer document is published.

Alongside the takeover agreement, Delivery Hero has agreed to sell business operations in 14 markets to SSW Partners for approximately $1.6 billion. This transaction is structured as a separate deal but is conditional on the successful closing of Uber’s offer for Delivery Hero.

The planned divestiture would reshape Delivery Hero’s geographic footprint before it becomes part of Uber. The conditional nature of the sale means it will proceed only if the broader acquisition clears all conditions and reaches completion.

To finance the acquisition, Uber has arranged a committed bridge facility of about €14 billion for cash confirmation purposes. The company plans to fund the transaction using a combination of existing cash and new debt financing. Uber states that it expects its gross leverage to remain below 2x and that the bridge facility will be refinanced prior to the deal’s closing.

The takeover remains subject to customary closing conditions, including specified merger-control and financial regulatory approvals. The parties currently expect the transaction to close in the second half of 2027, assuming all regulatory clearances are obtained and the necessary shareholder tenders are received.