Delivery Hero, the German online food delivery company, said Friday that it is taking full ownership of its Saudi subsidiary in a transaction valued at $297 million.
The company said it has bought the remaining 37% stake in HungerStation, which operates Delivery Hero in Saudi Arabia — in a deal that represents an effort from the Berlin-headquartered firm to expand its presence in the Middle Eastern food delivery market.
Shares of Delivery Hero were down 1.4% during afternoon trade.
“We believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition and potential, and are committed to contributing to its ongoing success through HungerStation,” Niklas Östberg, CEO and Co-Founder of Delivery Hero, said in a statement.
Delivery Hero is one of Europe’s biggest food delivery companies, commanding a $10 billion market value.
The firm has had troubles in its home market of Germany, where it was forced to quit in December 2021 after losing out to Netherlands-based Just Eat Takeaway.com.
Food delivery is an intensely competitive sector with multiple companies operating in the space. This has led to inevitable consolidation, with various companies acquiring competitors to achieve scale.
HungerStation connects more than 10,000 partners, including restaurants and grocery stores, with customers, Delivery Hero said in a statement Friday.
The deal will help the firm build stronger ties with HungerStation and the rest of the company’s portfolio, Delivery Hero added.
Source : CNBC