TLDR
- Uber has committed to purchasing another 4.5% ownership in Delivery Hero, valued at approximately $318 million (270 million euros)
- The transaction values shares at 20 euros each — beneath Delivery Hero’s Thursday closing price but representing a 22% premium over the one-month trading average
- Delivery Hero shares surged approximately 8.5% following the announcement
- Prosus must divest this stake as European competition authorities mandated a reduction in its Delivery Hero ownership to approve its 4.1 billion euro Just Eat acquisition
- Prosus currently owns approximately 21% of Delivery Hero, reduced from about 27% at the time of the initial Just Eat announcement
Uber is expanding its stake in Delivery Hero through a $318 million transaction to purchase an additional 4.5% from Prosus, the German delivery company’s primary shareholder.
The transaction values shares at 20 euros apiece. While this sits below Delivery Hero’s Thursday closing price following a 7% surge, Prosus indicates the valuation reflects a 22% premium compared to the one-month average trading price.
Delivery Hero shares climbed approximately 8.5% on the announcement. Uber experienced a modest increase of about 0.8%.
This marks Uber’s second significant investment in Delivery Hero. During 2024, the ride-hailing giant acquired $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 crucial. Prosus reached an agreement last year to acquire Just Eat Takeaway.com for 4.1 billion euros. European Commission regulators indicated they would greenlight the transaction — contingent upon Prosus substantially reducing its Delivery Hero position.
Prosus controlled approximately 27% of Delivery Hero at the time of the Just Eat announcement. That figure has decreased to roughly 21%. The company confirms it remains “committed to selling the relevant portion of its stake within the required timeframe.”
This suggests additional share sales could be forthcoming.
EU Merger Rules in the Spotlight
The transaction arrives during a pivotal period for European competition regulations. The Financial Times reported recently that the European Commission is exploring potential reforms to large merger guidelines.
According to reports, the Commission is evaluating whether to place greater emphasis on elements such as “innovation, investment and resilience of the internal market” during deal assessments.
European competition commissioner Teresa Ribera informed the FT that the EU seeks to promote “pro-competitive mergers” enabling European companies to maintain global competitiveness.
Prosus CEO Fabricio Bloisi has been outspoken on this issue. During a January interview with CNBC, he argued that major consolidations are essential for global competition, asserting that Europe’s history of blocking such deals has hindered regional growth.
“We have to change that to create really big companies in Europe,” Bloisi stated.
The Numbers
Uber is acquiring the 4.5% stake at 20 euros per share. Prosus will receive total gross proceeds of approximately 270 million euros, equivalent to $318 million.
Delivery Hero’s shares had already experienced significant upward momentum before the official confirmation, climbing roughly 7% on Thursday. Friday’s 8.54% jump extended those gains, with the DHER-FF ticker adding 1.69 euros during the session.
Prosus (PRX-NL) traded approximately 0.4% higher at the time of reporting.
The Just Eat acquisition continues to await final regulatory approval. Prosus will need to continue reducing its Delivery Hero holdings to meet the Commission’s stipulated requirements.
