Uber nears €12.5bn deal to acquire Delivery Hero, FT reports

Uber is reportedly close to acquiring German food delivery giant Delivery Hero in a deal valued at approximately €12.5 billion ($14.34 billion), the Financial Times reported Wednesday.

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Acquiring Delivery Hero, which has a market value of roughly €11.6 billion, would expand the Uber Eats food-delivery network in Europe, the Middle East, Asia and Latin America.

Delivery Hero confirmed on Tuesday that it was in advanced negotiations with Uber about a potential takeover. The acquisition would significantly expand Uber Eats' delivery network across Europe, the Middle East, Asia, and Latin America. However, the deal is likely to attract close attention from antitrust regulators due to operational overlaps between the two companies.

Sources familiar with the matter suggest Delivery Hero could announce the deal as early as Thursday, with Uber potentially offering around €41 per share. To address antitrust concerns, Delivery Hero is considering splitting off its Turkish unit, Yemeksepeti, and several European operations to sell to an investment firm. This move aims to reduce geographic overlap with Uber and lessen potential regulatory hurdles. The terms and timing remain subject to finalization and could change.

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Delivery Hero could announce the deal as early as Thursday, with Uber paying roughly €41 per share.

This potential acquisition follows months of speculation about Delivery Hero's future. Media reports indicated Uber had previously approached the company in May with a lower offer of €38 per share, which investors deemed insufficient. Neither Delivery Hero nor Uber immediately responded to requests for comment.

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Under the proposed deal, Delivery Hero will split off part of its business, selling its Turkish unit Yemeksepeti and several European operations to an investment firm, in an effort to limit geographic overlap with Uber and reduce potential antitrust scrutiny.