Delivery Hero sells its German business to Takeaway.com in a $1.1B deal

One more big consolidation play is underway in the highly competitive European food delivery business, amid more pressure from newer players like Uber Eats  and Deliveroo. Today, Delivery Hero announced that it will be selling its operations in Germany — its actual home market — to Dutch rival Takeaway.com for a total consideration of €930 million (or about $1.1 billion).

The deal covers all of Delivery Hero’s operations in Germany, which include the Lieferheld, Pizza.de and foodora brands, which will now merge with Takeaway.com’s  Lieferando.de brand. The financial terms: €508 million in cash and 9.5 million Takeaway.com shares worth c. €422 million, giving Delivery Hero an 18 percent share of Takeaway.com. Delivery Hero also will get a seat on the board unless it sells off shares that brings its holding to less than 9.99 percent. The companies say the deal should be closed in the first half of 2019.

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