06:39 AM EDT, 05/14/2024 (MT Newswires) -- Uber Technologies ( UBER ) late Monday finalized an overall $1.25 billion agreement to invest in Germany-based Delivery Hero and acquire its Foodpanda business in Taiwan, as the ride-hailing platform looks to strengthen its position in the Key Asian market.

Uber ( UBER ) will buy Delivery Hero's Taiwanese meal delivery operations for $950 million in cash, according to a joint statement. The acquisition, which requires approval from regulators, is expected to be completed in the first half of next year.

After the deal closes, Foodpanda Taiwan's local consumers, merchants and delivery partners will transition to Uber's ( UBER ) online food ordering and delivery platform, Uber Eats, which already has a presence in the country. As part of the agreement, the company will separately purchase $300 million of newly issued Delivery Hero shares.

Uber's ( UBER ) stock was down 1.5% at the close of Monday's trading session following the announcement but edged up 0.1% in premarket activity Tuesday.

"Bringing together our distinct customer bases, merchant selections, and geographic footprints will allow us to deliver more choices and the best prices for consumers, stronger demand for restaurants, and more earnings opportunities for delivery partners," Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber ( UBER ), said in the statement. "Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape."

The companies described the transaction as "one of the largest-ever international acquisitions" in Taiwan outside of the semiconductor industry. The sale of the business will allow Delivery Hero to focus its resources on other parts of its global footprint, according to Chief Executive Niklas Ostberg.

Last week, Uber ( UBER ) reported an unexpected first-quarter loss weighed down by its equity investments, while the company's gross bookings fell short of analysts' estimates. The firm's delivery bookings gained 18% on a yearly basis.

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