RIYADH: Delivery Hero has recommended shareholders accept Uber Technologies Inc.’s $14.8 billion takeover offer, moving the proposed acquisition closer to completion. The transaction has particular significance for the Middle East, where Delivery Hero owns Saudi Arabia’s HungerStation and operates talabat across several Gulf markets. The German company’s Management Board and Supervisory Board said Sept. 2 that they considered the €41.50 ($48.16)-per-share cash offer fair and adequate.   The offer price is well above the market, sitting around 127 percent higher than Delivery Hero’s average share price in the three months leading up to May 8, before the stock rose on takeover speculation. It is also about 52 percent above the average analyst price target for the stock before that date, the companies said.  In a joint statement, the boards said: “They deem the offer to be in the best interest of the company, its shareholders, employees and other stakeholders. They therefore support the offer and recommend that Delivery Hero shareholders accept it.”  Uber has secured irrevocable undertakings covering 16.68 percent of Delivery Hero’s shares. Combined with its existing 24.77 percent stake and a further 11.74 percent economic interest held through financial instruments, Uber’s total economic interest in the company exceeds 53 percent.   The acquisition, announced in July, would extend Uber’s mobility and delivery operations to 99 markets, with combined pro-forma gross bookings of $236 billion in 2025, according to Uber.  The $14.8 billion deal advances Uber’s push to build a global food-delivery business capable of competing with rivals such as Just Eat Takeaway.com, owned by Dutch group Prosus, and US rival DoorDash, which has been expanding aggressively. Amr Mustafa, founder and CEO of Egypt-based delivery platform Haader app, told Arab News that the recommendation marks an important shift from an announced deal to a more formal step, reflecting that Delivery Hero’s management views the offer and its terms as serving shareholders' interests.  “This deal represents a new phase in reshaping the global food-delivery market, not just a large acquisition,” he added.  Gulf impact  The deal would bring HungerStation, one of Saudi Arabia’s leading food-delivery platforms and a wholly owned Delivery Hero subsidiary, under Uber’s umbrella, giving the US company a significant presence in the Kingdom’s delivery market.  Saudi Public Investment Fund already owns 3.58 percent of Uber, a stake worth $5.24 billion, giving the Kingdom an indirect foothold in the enlarged company.  The transaction would also expand Uber’s presence across the Gulf Cooperation Council through talabat, Delivery Hero’s delivery platform operating in several regional markets, including the UAE, Kuwait, Qatar, Bahrain and Oman.  Combined with Uber’s existing mobility operations, including Careem, the acquisition would significantly broaden the company’s presence across the Gulf’s transportation, food-delivery and quick-commerce markets.   By bringing HungerStation and talabat into its portfolio, Uber would strengthen its ecosystem across mobility, food delivery and quick commerce in some of the region’s largest consumer markets.  Mustafa said the deal’s value to Uber lies in the scale of Delivery Hero’s network and its strong presence in key markets, particularly in the Middle East through brands such as talabat and HungerStation.   He added that the transaction’s most significant effects could emerge after completion, particularly in markets where Uber may be required to divest assets to address competition concerns, potentially opening opportunities for new investors and further acquisitions.  Drawing on his experience in the delivery sector since 2020, Mustafa said he expects the impact to extend beyond competition among platforms, affecting restaurants, logistics companies, delivery riders, commission structures and operational efficiency.  He expects further mergers and acquisitions across the sector in the coming years as competition increasingly centers on the scale of operating networks, unit economics and the ability to sustain growth.  What’s next Delivery Hero shareholders have until Nov. 5 to accept the offer and tender their shares.  For the transaction to proceed, Uber needs acceptances representing more than 50 percent of Delivery Hero’s shares, plus one share, including shares it already owns. The deal also remains subject to merger-control and other regulatory approvals, as well as conditions related to the separate sale of selected Delivery Hero businesses to SSW Partners.  If the conditions are met, the acquisition is expected to close in the second half of 2027.