Investing.com – Uber Technologies Inc (NYSE:) said on Tuesday it had reached an agreement with the German food delivery firm. Delivery Hero AG (ETR:) to acquire the latter’s food panda business in Taiwan for $950 million in cash.
As part of the deal, foodpanda will be included in the Uber Eats platform and is subject to regulatory approval. Uber said it expects the deal to close in the first half of 2025, until which Delivery Hero will continue to operate foodpanda.
Separately, Uber and Delivery Hero also reached an agreement under which Uber will purchase $300 million worth of newly issued common stock of Delivery Hero.
The deal was struck on Tuesday after reports earlier this year that the two companies had ended talks to sell Delivery Hero’s Asian operations. It is unclear whether the sale includes foodpanda’s operations in Southeast Asia.
The German firm is seeking buyers for its Asian operations as it seeks to streamline its operations and better focus on its core European market.
The deal also gives Uber more leverage in the food delivery space, especially in Asia, where Uber Eats faces stiff competition from local players.