Germany's food delivery company Delivery Hero (DH) will be acquired by U.S. ride-hailing company Uber.
On the 15th (local time), the Financial Times (FT), citing multiple sources, reported that the two companies plan to announce the acquisition agreement as early as the 16th. Uber agreed to pay €41 per DH share, valuing DH at about €12.5 billion (about 20 trillion won).
In May, Uber presented an acquisition proposal to the DH board at €33 per share, valuing the company at about €10 billion, and continued negotiations. It later raised the acquisition terms and now holds 24.99% of DH's voting equity.
If the transaction goes through, DH is expected to restructure its business by selling some units. To reduce overlap with Uber and pass antitrust reviews smoothly, it is said to be selling some European divisions, including Turkey's Yemeksepeti, to a U.S. investment company.
FT said the acquisition would allow Uber to expand its Middle East business based on Talabat and Saudi Arabia's HungerStation, while also securing DH's subsidiary in Korea, Baemin.
The transaction is seen as an example of the reshaping of the global food delivery market. Previously, last year, DoorDash acquired U.K.-based Deliveroo for £2.9 billion, and Prosus acquired Just Eat Takeaway for €4.1 billion.
The acquisition has been pursued after DH founder and Chief Executive Officer (CEO) Niklas Östberg, under years of pressure from shareholders, said he would step down in March next year.