Uber ups stake in Delivery Hero in £235 million deal

Just Eat Takeaway’s owner Prosus is selling its stake in Delivery Hero to appease EU competition concerns.

Uber ups stake in Delivery Hero in £235 million deal
Uber ups stake in Delivery Hero in £235 million deal Photo: Evening Standard

Uber has bought a 4.5% stake in German rival Delivery Hero from Just Eat Takeaway owner Prosus for about 270 million euros (£235.4 million), in a move to increase its holding in the European food delivery firm.

Uber has recently announced plans to grow its Uber Eats business across Europe this year, to boost bookings, which comes amid consolidation in the fiercely competitive European food delivery market.

US firm DoorDash bought Britain’s Deliveroo chain for £2.9 billion last year.

Uber’s acquisition of the further stake in Delivery Hero also helps Dutch firm Prosus fulfil conditions set by the European Commission for its buy-out of Just Eat Takeaway.

The sale price is 22% higher than the one-month average of Delivery Hero’s stock, but below the 20.14 euro (£17.55) level at Thursday’s market close.

It must reduce its holding to single digits by August this year to address EU regulator concerns.

Delivery Hero does not operate its brand in the UK, having agreed to sell its UK business, Hungryhouse, to Just Eat in 2016.

Source: This article was originally published by Evening Standard

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