Delivery Hero (DHER) Stock Jumps 8.5% as Uber Doubles Down With $318M Deal

TLDR

• Uber agreed to buy an additional 4.5% stake in Delivery Hero for roughly $318 million (270 million euros)
• The price paid was 20 euros per share — below Delivery Hero’s Thursday close but a 22% premium to the 1-month average
• Delivery Hero stock jumped around 8.5% on the news
• Prosus is selling the stake because European regulators require it to cut its Delivery Hero holding to get approval for its 4.1 billion euro Just Eat deal
• Prosus now holds around 21% of Delivery Hero, down from roughly 27% when the Just Eat deal was first announced

Uber is adding to its position in Delivery Hero, striking a $318 million deal to buy an extra 4.5% stake from the German firm’s largest shareholder, Prosus.

The price agreed was 20 euros per share. That’s below where Delivery Hero closed on Thursday after a 7% rally, but Prosus says it represents a 22% premium to the 1-month average share price.

Delivery Hero stock climbed roughly 8.5% on the news. Uber was up around 0.8%.

Uber Technologies, Inc., UBER

This isn’t Uber’s first move on Delivery Hero. Back in 2024, the company picked up $300 million in newly-issued Delivery Hero stock. Friday’s deal is a follow-on.

The backdrop here matters. Prosus agreed last year to buy Just Eat Takeaway.com for 4.1 billion euros. The European Commission said it would approve that deal — but only if Prosus cut its stake in Delivery Hero by a meaningful amount.

In other words, more selling may be coming.

EU Merger Rules in the Spotlight

The deal lands at an interesting moment for European competition policy. The Financial Times reported this week that the European Commission is considering loosening the rules around large mergers.

The Commission is said to be weighing up giving more credit to factors like “innovation, investment and resilience of the internal market” when assessing deals.

Europe’s competition commissioner Teresa Ribera told the FT the EU wants to encourage “pro-competitive mergers” that allow European firms to remain relevant in global markets.

Prosus CEO Fabricio Bloisi has been vocal on this topic. Speaking to CNBC in January, he said big mergers are needed to compete at a global level, and that Europe’s track record of blocking consolidation has held the region back.

The Numbers

Uber is paying 20 euros per share for the 4.5% block. Total gross proceeds to Prosus come to approximately 270 million euros, or $318 million.

Delivery Hero’s stock had already moved sharply higher before the deal was confirmed, rising around 7% on Thursday. The Friday pop of 8.54% pushed the stock further, with the ticker DHER-FF gaining 1.69 euros on the day.

Prosus (PRX-NL) was up around 0.4% at the time of writing.

The Just Eat deal itself remains pending regulatory clearance. Prosus will need to keep trimming its Delivery Hero position to satisfy the Commission’s conditions.

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