Key Highlights
- Uber purchased an additional 4.5% ownership in Delivery Hero for approximately $318 million (270 million euros)
- The acquisition price of 20 euros per share came in under Delivery Hero’s Thursday closing price but represented a 22% premium over the one-month average
- Delivery Hero shares surged approximately 8.5% following the announcement
- Prosus is divesting this stake to comply with European regulatory requirements for approval of its 4.1 billion euro Just Eat acquisition
- Prosus’s ownership in Delivery Hero has decreased to approximately 21%, down from roughly 27% at the time of the Just Eat deal announcement
Uber is expanding its investment in Delivery Hero through a $318 million transaction to acquire an additional 4.5% stake from Prosus, the German delivery company’s primary shareholder.
The transaction was executed at 20 euros per share. While this figure falls short of Delivery Hero’s Thursday closing price following a 7% surge, Prosus indicates it reflects a 22% premium compared to the one-month average trading price.
Delivery Hero shares rallied approximately 8.5% on the announcement. Uber stock increased by around 0.8%.
This marks Uber’s second investment in Delivery Hero. In 2024, the ride-hailing giant purchased $300 million worth of newly-issued Delivery Hero shares. Friday’s transaction represents an expansion of that initial position.
The context surrounding this deal is significant. Prosus entered into an agreement last year to acquire Just Eat Takeaway.com for 4.1 billion euros. The European Commission indicated it would greenlight the transaction — but imposed a condition requiring Prosus to substantially reduce its Delivery Hero holdings.
Prosus owned approximately 27% of Delivery Hero at the time of the Just Eat acquisition announcement. That stake has now declined to roughly 21%. The company has stated it remains “committed to selling the relevant portion of its stake within the required timeframe.”
This suggests additional stake sales could be on the horizon.
European Merger Regulations Under Review
The transaction comes at a pivotal time for European competition enforcement. According to a Financial Times report this week, the European Commission is exploring potential modifications to its approach toward major mergers.
The Commission is reportedly evaluating whether to place greater emphasis on considerations such as “innovation, investment and resilience of the internal market” during merger assessments.
Europe’s competition commissioner Teresa Ribera informed the FT that the EU seeks to promote “pro-competitive mergers” that enable European companies to maintain competitiveness in global markets.
Prosus CEO Fabricio Bloisi has been outspoken on this issue. In a January conversation with CNBC, he argued that large-scale mergers are essential for global competitiveness, and that Europe’s history of blocking consolidation has disadvantaged the region.
“We have to change that to create really big companies in Europe,” Bloisi stated.
Deal Breakdown
Uber is acquiring the 4.5% stake at 20 euros per share. Prosus will receive gross proceeds totaling approximately 270 million euros, equivalent to $318 million.
Delivery Hero stock had already experienced significant upward movement prior to deal confirmation, climbing roughly 7% on Thursday. The Friday surge of 8.54% propelled shares even higher, with the ticker DHER-FF gaining 1.69 euros during the trading session.
Prosus (PRX-NL) was trading approximately 0.4% higher at the time of writing.
The Just Eat acquisition continues to await final regulatory approval. Prosus will be required to continue reducing its Delivery Hero stake to meet the Commission’s stipulated conditions.
