Uber Technologies, Inc ( UBER ). and Delivery Hero SE have struck a deal, with Uber ( UBER ) set to acquire Delivery Hero’s foodpanda delivery arm in Taiwan for $950 million in cash.

Separately, the companies have also agreed for Uber ( UBER ) to purchase $300 million in newly issued ordinary shares of Delivery Hero.

The transaction is pending regulatory approval and customary closing conditions, slated for the first half of 2025. 

Until closing, Delivery Hero will maintain foodpanda Taiwan’s operations, assuring customers and vendors of uninterrupted service. 

Post-acquisition, Uber Eats will absorb foodpanda’s local clientele, merchants, and delivery partners.

Uber’s existing presence in Taiwan positions it favorably to leverage Delivery Hero’s groundwork and enhance user experiences. 

Niklas Östberg, Delivery Hero’s CEO, expressed confidence in the deal, affirming the move’s potential for foodpanda’s growth in Taiwan.

The merger aims to amalgamate Uber’s operational proficiency with foodpanda’s extensive reach and local affiliations, offering consumers broader options in cuisine and pricing. 

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This synergy promises improved services, increased orders for merchants, and enhanced earning prospects for delivery partners.

Pierre-Dimitri Gore-Coty, Uber’s Senior Vice President of Delivery, said, “Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape.”

“We’re so excited about the opportunity to deliver even greater convenience and value that this transaction would unlock in the years ahead.” 

Upon completion, this acquisition would mark one of Taiwan’s largest international deals, signaling Uber’s confidence in Taiwan’s investment climate.

Price Action: UBER ( UBER ) shares closed lower by 1.45% at $66.02 on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.