Delivery Hero confirms advanced negotiations with Uber over potential takeover offer

July 14 (Reuters) - Delivery Hero said ‌on Tuesday it ​was ​in advanced negotiations with Uber Technologies regarding a potential takeover offer, confirming earlier media reports that the U.S. ride-hailing and food-delivery company ‌is pursuing the German group.

The statement followed a Bloomberg News report ⁠that Uber was in advanced talks to acquire Delivery Hero and could reach an agreement as ‌soon as this week.

The report ‌said a deal would likely value Delivery Hero at well above its recent trading price of around 36 euros per share. The Berlin-based company has gained ​about 62% this year, giving it a market value of roughly 11.2 billion euros ($12.8 billion).

Delivery Hero declined to comment on speculation about the offer price, ⁠but said any potential bid would be made to all shareholders. Uber declined to comment.

Shares of Uber were ​down nearly 2%, while Delivery Hero closed 5.76% higher at 39.10 euros.

The talks follow months of speculation over Delivery Hero's future, ​with Uber having approached the company in ‌May with a 38 euros per share offer that investors viewed as too low, according to media reports.

Acquiring Delivery Hero would ⁠widen the Uber Eats food-delivery network in Europe, the Middle East, Asia and Latin America, but would also attract attention from antitrust regulators given the overlap in the companies' footprint.

Slowing ⁠growth and intense competition have spurred consolidation in the industry as companies seek better margins. ​Uber has also been moving beyond ride-hailing, strengthening its food delivery business and expanding into grocery, travel and local commerce, including a recent move into hotel bookings.

Earlier this year, Uber unveiled ‌a food-delivery expansion into seven new European markets, including Austria, Denmark and Norway, expecting to generate an additional $1 billion in ‌gross bookings over the next three years.

Reuters had reported in late May that Uber ⁠had raised its stake in Delivery ‌Hero to nearly 37% ​from 25% by acquiring shares from fellow shareholder Aspex Management.

($1 = 0.8731 euros)

(Reporting by Rashika Singh in Bengaluru; Editing by Vijay Kishore and ‌Jonathan Ananda)

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