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Food delivery service site Delivery Hero.
Rafael Henrique | SOPA Pictures | LightRocket via Getty Images
German online food delivery company Delivery Hero said on Friday that it had acquired full ownership of its Saudi subsidiary in a deal worth $297 million.
The company said it has bought the remaining 37% stake in HungerStation, which operates Delivery Hero in Saudi Arabia – in a deal that marks an effort by the Berlin-based company to expand its presence in the food delivery market in the Middle East.
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Delivery Hero shares were down 1.4% in afternoon trade.
“We believe in Saudi Arabia’s Vision 2030, its ambition and its potential, and we are committed to contributing to its continued success through HungerStation,” Niklas Ostberg, CEO and Co-Founder of Delivery Hero, said in a statement.
Delivery Hero is one of the largest food delivery companies in Europe, with a market capitalization of $10 billion.
The company has had problems in its home market in Germany, where it was forced to resign in December 2021 after losing out to Netherlands-based Just Eat Takeaway.com.
Food delivery is an intensely competitive sector with many companies operating in this field. This led to an inevitable merger, as many companies acquired competitors to achieve scale.
Delivery Hero said in a statement Friday that HungerStation connects more than 10,000 partners, including restaurants and grocery stores, with customers.
Delivery Hero added that the deal will help the company build stronger relationships with HungerStation and the rest of the company’s portfolio.
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