Uber (UBER) Stock Dips Amid Reports of Delivery Hero Acquisition Talks

Key Takeaways

• Bloomberg reports Uber is considering a complete acquisition of Delivery Hero, a major European food delivery player
• Uber disclosed earlier this week it owns a 19.5% stake in Delivery Hero, with an additional 5.6% through options
• Investment bank Morgan Stanley assisted Uber in rapidly accumulating its position through derivative instruments
• Uber shares declined approximately 1.9% following the announcement; rival DoorDash climbed 1.9%
• Delivery Hero’s stock has surged almost 110% in Frankfurt during the last half-year, reaching a market capitalization of approximately €10.2 billion

According to a Friday Bloomberg report, Uber has entered preliminary discussions regarding a potential full acquisition of Delivery Hero, the Frankfurt-traded food delivery powerhouse.

The strategic initiative is designed to strengthen Uber’s competitive position against DoorDash in markets beyond American borders.

Following the report’s release, Uber’s stock price fell roughly 1.9%. Meanwhile, DoorDash—considered a primary competitor in global delivery markets—saw its shares rise 1.9% on the same information.

Uber Technologies, Inc., UBER

Just days ago, Uber revealed it had swiftly accumulated a 19.5% ownership position in Delivery Hero, complemented by options representing another 5.6%. The stake was built with assistance from Morgan Stanley, which leveraged derivative products to facilitate rapid execution.

Bloomberg’s sources indicate that Uber has been engaging in conversations with additional Delivery Hero shareholders regarding its potential acquisition interest.

Uber’s Official Position

In an official submission to German financial regulators, Uber declared it presently has no plans to increase its ownership to 30% or beyond—a key threshold that would normally require a mandatory takeover bid under European regulatory frameworks.

Nevertheless, the company acknowledged that it regularly evaluates its investment portfolio and remains open to acquiring additional shares should favorable circumstances emerge.

Uber further clarified it has no intentions to modify Delivery Hero’s capital framework or seek to influence board member selections beyond exercising standard shareholder voting privileges.

The company may still require regulatory clearance from antitrust authorities before exceeding specific ownership levels across European jurisdictions.

Delivery Hero’s Current Position

Delivery Hero’s stock has surged approximately 110% on the Frankfurt exchange during the previous six-month period, bringing its total market capitalization to around €10.2 billion.

The organization provides food and grocery delivery operations throughout numerous international markets excluding the United States, positioning it as a valuable strategic acquisition target for any platform seeking international expansion.

With support from financial advisory firms, Uber is carefully evaluating various approaches to expand its ownership stake, according to Bloomberg’s reporting.

Discussions remain in progress, though sources emphasized that no guarantee exists that negotiations will culminate in a completed transaction.

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