Uber nears Delivery Hero takeover in deal valuing it above €11 billion

What's the deal? Uber is in advanced talks to acquire German food-delivery company Delivery Hero, Bloomberg News reported on Tuesday, citing people familiar with the matter. Uber aims to reach an agreement as soon as this week.

The terms: Delivery Hero currently carries a market value of around €11.2B ($12.8B), and a transaction would likely value the company well above that, according to Bloomberg. That marks a step up from Uber's May approach, which valued Delivery Hero at about €10B.

What each company does: Uber runs ride-hailing and delivery platforms globally. Delivery Hero provides online food delivery in more than 40 countries across Europe, the Middle East, North Africa, Asia, and the Americas, with brands including Foodpanda, PedidosYa, Talabat, and Hungerstation.

Why now? Uber has been building its position in the company, raising its stake to nearly 37% from 25% by buying shares from fellow shareholder Aspex ManagementDealroom has a profile for this one. Try Dealroom →. A full takeover would consolidate that foothold.

Market reaction: Delivery Hero shares rose more than 5% on the report, lifting the company's market value close to €12B. Uber was down nearly 3%.

What could go wrong? No agreement has been finalised, and terms could still shift. Uber declined to comment, while Delivery Hero did not respond immediately.

The signal: A deal would extend Uber's delivery reach into fast-growing markets across the Middle East, Asia, and Latin America, where Delivery Hero is entrenched. It reflects continued consolidation in a global food-delivery sector still searching for scale and profitability.

Read more: economictimes.indiatimes.com, marketscreener.com, Bloomberg