On May 25, 2026, a global research report from Bank of America focused on the proposed full acquisition of European food delivery platform Delivery Hero by ride-hailing and delivery giant Uber. Uber has confirmed an offer to acquire Delivery Hero entirely for €33 per share, which corresponds to a market capitalization of approximately €9.8 billion and an enterprise value of €11.9 billion.

Since mid-April, following Uber's increased stake and pressure from activist shareholders, Delivery Hero's share price has risen significantly, already reflecting this expectation. While no final deal has been reached, this move signals a clear strategic shift, bringing a potential control transaction to the forefront. Uber's stake has recently climbed to about 19.5%, and with the exercise of options, could reach approximately 25%. Consequently, Bank of America has withdrawn its rating on Delivery Hero, citing that valuation is now event-driven.

The investment thesis is no longer centered on operational performance. Valuation is increasingly determined by strategic options, including acquisition expectations, portfolio adjustments, and potential asset sales. At the offer price of €33 per share, Delivery Hero is valued at an enterprise value-to-sales (EV/Sales) multiple of 0.75x and an enterprise value-to-EBITDA (EV/EBITDA) multiple of 12.6x. Compared to recent industry M&A transactions, these multiples appear conservative.

However, the offer faces significant uncertainties: it requires shareholder approval, faces potential regulatory hurdles, and other companies may bid for parts of the business. As of the report's publication, no formal transaction agreement had been reached between the parties.

This potential acquisition is not sudden. Significant shareholder restructuring over the past two months set the stage. Prosus, previously holding a 26.3% stake, was forced to reduce its holding to 16.8% due to regulatory requirements. Activist investment firm Aspex increased its stake from 9.23% to 14.55%, publicly pushing Delivery Hero to accelerate its strategic review, sell assets, and replace its CEO. Meanwhile, Uber has been steadily increasing its stake, with direct holdings reaching 19.5%. Combined with options, its total potential stake is 25.1%, making it a key driving force behind the share price surge since mid-April.

The most significant obstacle to the transaction is antitrust scrutiny. A merger with Uber carries substantial execution risk. The companies operate in 20 overlapping countries, creating intense antitrust pressure with varied outcomes likely across different regions. Regulatory reviews are expected to be particularly stringent in developed European markets like Spain, Portugal, and Turkey, as well as highly integrated Latin American markets such as Argentina and Chile, potentially leading to asset divestiture requirements.

Additional uncertainties include shareholder approval and potential competitive bids from other industry players for valuable assets, which could prolong the transaction timeline and increase acquisition costs.

The global food delivery market shows a clear trend toward duopoly concentration, where scale and logistics capabilities are core competitive advantages. Increasing regulatory scrutiny is further accelerating industry consolidation. In Europe, rising costs due to regulations concerning rider rights and sustainability have solidified a stable duopoly structure. In the Middle East and Africa, Delivery Hero is dominant, with its Talabat and HungerStation platforms holding about 50% market share in the Middle East, though high profitability is attracting new entrants like Meituan. Latin America is the world's most integrated region, featuring a three-way competition between iFood, Delivery Hero's PedidosYa, and Rappi. The Asia-Pacific market is fiercely competitive, with local super-apps vying with global giants in a fragmented but rapidly growing landscape.

Regarding valuation, the proposed acquisition values Delivery Hero at 0.75x estimated 2026 EV/Sales and 12.6x EV/EBITDA, notably below recent industry transaction averages of 1.4x EV/Sales and 16.5x EV/EBITDA, suggesting a conservative valuation.

Given that Delivery Hero's share price has decoupled from fundamentals and is entirely driven by the acquisition event, Bank of America has formally withdrawn its previous "Underperform" rating. Investors are advised to disregard the old rating and price target. The final transaction price, shareholder positions, potential control premium, and ultimate strategic outcome remain highly uncertain. The subsequent stock performance will depend on shareholder votes, regulatory approvals, and the final strategic result.