Saturday, January 01, 2022
Development of a shopping offer
Delivery Hero buys Spain’s delivery pioneer
Delivery Hero sees no future in the food delivery business in Germany. Perhaps it will work out instead with purchases from supermarkets or pharmacies. In any case, the Berlin Dax company is strengthening itself with a long-standing Spanish partner.
The Berlin delivery service Delivery Hero wants to take over the majority of the Spanish competitor Glovo. An agreement had been signed with a number of Glovo shareholders to acquire additional shares of 39.4 percent in exchange for own shares, reports the Dax group. “As a result of the transaction, Delivery Hero will become the majority shareholder in Glovo.” The proportion will therefore rise to over 80 percent.
For the 7.9 million Delivery Hero shares offered for this purpose, based on the closing price on December 30, 2021, this results in a value of around 780 million euros. Glovo will be valued at 2.3 billion euros in the course of the transaction. Completion of the acquisition is “subject to certain conditions and regulatory approvals, including merger control clearance in several countries, and is expected to occur in the second quarter of 2022”.
Glovo boss Oscar Pierre welcomed the move. Delivery Hero boss Niklas Östberg said Glovo had taken on a pioneering role in the industry and held a leading market position in 16 out of 25 countries. The delivery app, which was founded in Barcelona in 2015, is reportedly represented in over 1,300 cities in 25 countries in Europe, Central Asia and Africa and in the third quarter of 2021 delivered 36 million orders and recorded sales of 151 million euros.
Delivery Hero has been involved in the delivery app for several years, which is not limited to restaurant food, but also covers purchases from supermarkets or pharmacies. Shortly before Christmas, Delivery Hero announced that it would stop its food delivery service Foodpanda in Germany after a short time. It was only in May that the company announced that it would be offering a delivery service in German cities again after giving up the German business to the competition years ago.