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August 16, 2021updated 16 Mar 2022 6:54am

Delivery Hero agrees to sell Delivery Hero Korea for $687m

By divesting the South Korean unit, Delivery Hero intends to obtain regulatory approval for Woowa Brother acquisition.

German online food delivery service Delivery Hero has signed an agreement with a consortium comprising Affinity Equity Partners, GS Retail and Permira Advisers to divest its Korean unit for an enterprise value of $687m (KRW800bn).

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The three-party consortium will acquire Delivery Hero Korea in full as part of the deal.

Delivery Hero co-founder and CEO Niklas Östberg said: “Together with the Delivery Hero Korea team, we have created a vibrant community of riders, restaurants and partners in South Korea.

“I want to sincerely thank the team for their hard work in the past years and wish them all the best for their journey ahead. It has been a fantastic journey and I am proud of how we managed to build an amazing brand that customers love.”

Last December, Delivery Hero announced plans to divest its South Korean unit in a bid to secure regulatory approval for its $4bn acquisition of South Korean online food delivery company Woowa Brothers.

Local antitrust watchdog the Korea Fair Trade Commission (KFTC) initially gave Delivery Hero a six-month timeframe to divest 100% of Delivery Hero Korea. The date was later extended by another five months from 2 August 2021.

After the signing of the binding agreement, Delivery Hero said that it is now on track to fulfil the structural remedies.

The sale is expected to be completed before the end of this year, subject to certain regulatory approvals.

Earlier this year, Dutch investment company Prosus raised its holdings in Delivery Hero by 8.2%.

Prosus purchased the additional interest in the German food-delivery company via market and bilateral trades through its subsidiary, MIH Food.

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img

Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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