Uber in Advanced Talks to Acquire Delivery Hero as Uber Shares Dip

Uber Technologies is in advanced negotiations to acquire Delivery Hero, The Independent reported. Delivery Hero confirmed on Tuesday that it is engaged in discussions with Uber regarding a potential takeover offer, following a Bloomberg News report that an agreement could be reached as early as this week.

The proposed deal is expected to value Delivery Hero above its recent trading price of approximately 36 euros per share.

The Berlin-based company has seen its value climb by about 62 percent this year, giving it a market capitalization of roughly 11.2 billion euros, or $12.8 billion. Delivery Hero stated that any potential bid would be extended to all shareholders. Uber declined to comment on the discussions.

Uber shares fell nearly 2 percent after the news, while Delivery Hero stock closed 5.76 percent higher at 39.10 euros. Media reports indicate Uber previously approached Delivery Hero in May with an offer of 38 euros per share. Reuters reported in late May that Uber raised its stake in Delivery Hero to nearly 37 percent from 25 percent by purchasing shares from Aspex Management.

An acquisition would expand Uber Eats across Europe, the Middle East, Asia, and Latin America. Uber announced earlier this year an expansion of its food delivery operations into seven new European markets, projecting an additional $1 billion in gross bookings over the next three years. The food delivery industry has seen increasing consolidation amid slowing growth and intense competition.