German Delivery Hero takes 5.09% stake in rival Deliveroo
Adds details, Deliveroo shares
LONDON, August 9 (Reuters) – Germany’s delivery hero DHER.DE took a 5.09% stake in online food delivery competitor Deliveroo ROO.L, pushing the UK company’s share price to its highest since its IPO in March.
Shares of Deliveroo, which disclosed the stake in a stock market notice on Monday, rose more than 6% to 345 pence. They were valued at 390 pence at the time of its initial public offering (IPO).
Online catering platforms such as Delivery Hero, Deliveroo, Uber Eats and Just Eat Takeaway.com TKWY.AS have benefited from increased demand during pandemic closures, but some analysts wonder how much of that activity will persist as restaurants reopen.
A race to new markets and early consolidation movements have resulted in a number of cross-holdings in the sector.
Founded in 2011, Delivery Hero is present in some fifty countries around the world, with particular strength in Asia, where it owns the foodpanda brand.
It does not operate in Britain – Deliveroo’s largest market – having sold its Hungryhouse business to Just Eat in 2016.
However, after further consolidation in Germany, he owns a 7.4% stake in Just Eat Takeaway.com.
It also owns a 37% stake in Spain’s Glovo, which is considering its own listing in about three years.
(Reporting by Rachel Armstrong and Paul Sandle Editing by David Goodman)
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