Uber, the largest delivery platform in the world, has initiated the acquisition process for Delivery Hero, the parent company of the South Korean food delivery service Baemin.
On July 16, local time, Reuters reported that Uber launched a public tender offer for shares of Delivery Hero. The offer price is set at €41.50 (approximately $70.41), representing a premium of about 34% over the three-month volume-weighted average share price as of the previous day.
This acquisition would value Delivery Hero at $14.8 billion (approximately 21.89 trillion won) and is expected to position it as the largest food delivery company in the world, excluding China, with a total gross merchandise value of $236 billion last year, according to Reuters.
Uber already holds nearly 37% of Delivery Hero's shares, and it is reported that Dutch investment firm Prosus, which owns about 17% of Delivery Hero, has agreed to sell its stake to Uber.
The acquisition is anticipated to be completed in the second half of next year, after which Baemin is expected to become a subsidiary of Uber. Amid increasing competition from food delivery companies like DoorDash, Uber has been pursuing the acquisition of Delivery Hero to strengthen its market position.
Kristin Skogen Lund, chair of Delivery Hero's supervisory board, emphasized, "The food delivery business is highly competitive, and success is determined by scale. Partnering with a strong ally is the best course of action for Delivery Hero to secure its future competitiveness."
* This article has been translated by AI.
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