The proposal from Delivery Hero to acquire The Chefz, a Riyadh-based food delivery firm, was reportedly turned down by Saudi Arabia’s General Authority for Competition.
Bloomberg reported that it was the second attempt made by the German company to take over a rival in Saudi Arabia.
Earlier in the year, the German firm failed in its attempt to buy Saudi delivery app Mrsool.
Although the competition watchdog did not divulge details about rejecting the offer, it revealed that Delivery Hero intended to acquire all of the stake in The Chefz.
The Saudi firm is still having discussions with the German company, according to the report. Delivery Hero did not comment on the issue.
The Chefz CEO Abdulrahman Alshabanat stated that the company has been in talks with Delivery Hero since the beginning of the year, even after getting several higher offers.
Alshabanat was quoted by Bloomberg as saying: “Our main goal of the acquisition wasn’t a financial one – instead we cared most about choosing the firm that had the right experience in the market. What I care about the most right now is growing the firm.”
Currently, The Chefz is said to have been competing with Delivery Hero’s Hungerstation as well as some other local companies, such as Jahez International.
Alshabanat added that the company will explore other options, including an initial stock sale, as well as also look for other buyers.
In October, Delivery Hero agreed to acquire hugo’s food delivery as well as quick commerce businesses in Central America and the Caribbean regions.