Uber Technologies Inc. is in talks with potential acquirers for selected regional operations of Delivery Hero SE as it seeks to secure the regulatory approvals that would be necessary for a full acquisition.
Company representatives have approached firms that could assume Delivery Hero assets operating in markets where the two companies overlap across Latin America, Asia and Europe, according to people familiar with the matter. Those conversations form part of a strategy to address competition and regulatory concerns that could arise during a transaction review.
The outreach coincides with Uber increasing its economic interest in Delivery Hero to approximately 36.8% in recent months, a stake figure that encompasses both equity and other instruments. That elevated holding demonstrates progress in Uber's effort to pursue a comprehensive purchase of the German food-delivery business, while also underscoring the need to navigate approval processes in multiple jurisdictions.
Executives and advisers are apparently exploring asset-sale options as a means to reduce overlap in specific regional markets and thereby improve the likelihood of clearance from competition authorities. Any divestitures would focus on markets where both companies operate and where regulators may view a combined operation as problematic.
Despite these moves, a full acquisition cannot proceed without regulatory sign-off across the relevant authorities. The scope and timing of required approvals remain open questions, and any transaction would be conditional on satisfying those legal and regulatory requirements.
Summary
Uber is contacting potential buyers for selected Delivery Hero regional operations in overlapping markets across Latin America, Asia and Europe to help secure regulatory approval for a potential full takeover. The company has raised its stake in Delivery Hero to about 36.8%, including instruments, but a complete acquisition would still require clearance from multiple jurisdictions.
Key points
- Uber has approached firms that might acquire Delivery Hero assets in regions where the two companies overlap - specifically Latin America, Asia and Europe.
- Uber's stake in Delivery Hero has been increased to approximately 36.8%, a position that includes instruments as well as equity.
- A full takeover would hinge on obtaining regulatory approvals in several jurisdictions before it could be completed.
Risks and uncertainties
- Regulatory clearance - A full acquisition would require approvals from competition and other authorities in multiple jurisdictions, and outcomes are not guaranteed.
- Asset-sale execution - Negotiations to divest overlapping regional operations could be complex and may not resolve all regulatory concerns.
- Timing and scope - The timing and exact scope of any required divestitures or remedies remain uncertain, affecting how and when a transaction could close.