Delivery Hero AG Shares Drop

Delivery Hero AG (ETR:DHER) shares experienced a significant drop on Friday, with a decline of around 9% to €26 in Frankfurt trading after Taiwan blocked its local subsidiary’s sale to Uber Technologies (NYSE:UBER).

Background

Taiwan's Fair Trade Commission determined that Uber's planned acquisition of Foodpanda could negatively affect market competition. The $950 million deal was expected to close by mid-2025 and was one of Taiwan’s largest deals outside the semiconductor sector, indicating a strategic shift for Delivery Hero from certain Asian markets.

Despite the fall, shares recovered slightly to €26.98 as of 04:59 ET (09:59 GMT).

Company Responses

Delivery Hero, which expanded rapidly during the pandemic, has been restructuring amidst pressure from activist investors. In December, it spun off its Middle Eastern unit, Talabat Holding Plc, in Dubai’s largest IPO of the year, raising $2 billion.

In a statement, the company mentioned that Uber might appeal the decision or withdraw from the deal. Uber showed disappointment but reiterated its commitment to Taiwan.

Analyst Insights

Bernstein analysts noted uncertainties surrounding an appeal by Uber, suggesting it may not succeed due to market share concerns. They assessed the development as “modestly negative” for Uber, which had aimed to leverage benefits from the combined entity. Analysts believe this would have minimal impact on Uber stock and forecasts.