Delivery Hero receives approval on $4bn Woowa deal, must divest S. Korean unit



by   |  VIEW 736

Delivery Hero receives approval on $4bn Woowa deal, must divest S. Korean unit

Delivery Hero SE, the Berlin-headquartered European multinational online food delivery service provider that processed over 666 million orders last year, had received a greenlight to hold forth with its $4 billion Woowa takeover deal, nonetheless, the German food delivery app ought to divest its South Korean arm Yogiyo as a part of the concessions required for regulatory approval of its acquisition of the top-flight South Korean food delivery app Woowa Brothers, the European online food delivery giant having had over 25,000 employees to date had unveiled in a statement on Monday.

In point of fact, an approval of S. Korea’s Woowa acquisition in effect would steer clear the European food delivery giant of a major stumbling block, strengthening its dominance in the world’s third-largest online delivery market, as competitions were reportedly stepping up amid an upsurge in demands driven by the pandemic outbreak alongside an uptick in the numbers of the far-east Asian country’s home-grown online delivery start-ups.

Aside from that, latest approval of a $4 billion Woowa acquisition deal that would require a divestiture of Delivery Hero’s S. Korean unit Yogiyo as beforementioned came forth nearly a year after the Berlin-headquartered online food delivery giant had agreed to purchase Woowa in a bid to bolster its footprint in a fiercely competitive S.

Korean online food delivery market.

Delivery Hero gets approval on $4 billion Woowa takeover, shares soar

Besides, following an announcement that Delivery Hero would accept the regulatory terms required for an approval of the buyout deal, shares’ prices of Frankfurt-listed Delivery Hero skyrocketed as much as 9.12 per cent to wrap up the day at €129.25 apiece.

Meanwhile, Delivery Hero was quoted saying in a regulatory filing earlier in the day that the European online food delivery mogul was expecting to close the deal as early as by the first quarter of 2021. Concomitantly, expressing a deep discontent over the terms of regulatory approval, Delivery Hero Chief Executive and Co-founder Niklas Ostberg said in a statement late in the day, “We are deeply saddened by the required condition to divest Delivery Hero’s subsidiary.

We... will work hard to ensure that this transition is as smooth as possible for all impacted employees”.