Uber explores takeover of European food delivery rival Delivery Hero - Bloomberg

Investing.com -- Uber Technologies Inc (NYSE: UBER) is exploring options for a full takeover of European delivery giant Delivery Hero AG (ETR: DHER), Bloomberg reported Friday, citing people familiar with the matter. The strategic move is intended to help the ride-hailing company better compete with DoorDash Inc (NASDAQ: DASH) outside the United States.

The news comes after the San Francisco-based giant disclosed this week that it had rapidly boosted its stake in Frankfurt-listed Delivery Hero. Working alongside financial advisers, the company is actively studying ways to increase its holding further, Bloomberg’s report said.

Uber has also been speaking to other investors in Delivery Hero about its potential interest in a deal. On Monday, the firm confirmed it held a 19.5% stake after acquiring additional shares and instruments, plus another 5.6% in options.

Investment bank Morgan Stanley has helped Uber build this position quickly through the use of derivatives, the people said.

In a formal group notification to German regulators, Uber stated that it currently has no intention to lift its stake to 30% or more. However, the company noted that it periodically reviews investments and could buy more equity if an attractive opportunity arises. According to the notification, Uber does not intend to change the capital structure or influence board appointments beyond ordinary voting rights.

The California-based corporation may need to seek antitrust approval before crossing certain ownership thresholds in Europe, the report stated. Deliberations are still ongoing, and people familiar with the matter cautioned that there is no certainty they will lead to a final transaction.

Shares in Delivery Hero have risen nearly 110% in Frankfurt trading over the past six months, giving the firm a market value of around €10.2 billion. Meanwhile, Uber stock fell 1.9% following the report of its takeover considerations, while DoorDash stock gained 1.9%.

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