Deal combines two of world’s biggest food-delivery platforms
Delivery Hero confirmed Wednesday that its management and supervisory boards have independently reviewed and support Uber Technologies’ $14.8 billion takeover bid, recommending that shareholders tender their shares in favor of the deal.
“The management and supervisory boards of Delivery Hero deem the offer to be in the best interest of the Company, its shareholders, employees and other stakeholders,” the company said. “They therefore support the offer and recommend that Delivery Hero shareholders accept it.”
The boards “share Uber’s view that the combination has the potential to accelerate product innovation and create significant additional opportunities for employees, customers, merchants, riders, drivers, and other stakeholders,” according to Delivery Hero.
The endorsement advances a transaction Uber first announced in July, when it said it had reached an agreement to buy Delivery Hero in a deal valuing the smaller company at $14.8 billion. Delivery Hero said in July that its boards planned to support the deal at the time.
The agreement came after the San Francisco-based Uber had steadily increased its stake in Delivery Hero, becoming its largest shareholder before launching takeover talks.
The proposed tie-up would mark fresh consolidation in the food-delivery industry. Uber’s U.S. rival DoorDash last year agreed to acquire British food-delivery company Deliveroo, while tech investor Prosus — which owns food-delivery platform iFood — bought Amsterdam-based Just Eat Takeaway.com. That deal was approved by European regulators on the condition that Prosus cut its stake in Delivery Hero. Under the planned Uber tie-up, Prosus is to sell its remaining Delivery Hero stake to Uber.