Uber has more than doubled its stake in Germany’s Delivery Hero, becoming the largest shareholder, according to a company announcement and LSEG data on Monday.
Delivery Hero said its rival had increased its holding to about 19.5% of issued capital from roughly 7%. Uber’s stake is worth around 1.7 billion euros, according to Reuters calculations.
“Delivery Hero welcomes Uber’s additional investment as a further endorsement of its platform and Everyday App strategy,” the company said in a statement.
The US-based ride share app also has options for a further 5.6% of the shares, Delivery Hero said. This could give Uber a blocking minority.
Uber, which offers delivery service in Germany in competition with Delivery Hero, said in a regulatory filing it does not currently intend to increase its stake to 30%, a move that would trigger a mandatory offer to the remaining shareholders.
Uber declined to comment beyond its regulatory filing.
Shares in Delivery Hero closed 5.6% higher following the announcement.
“While Uber’s ultimate intentions on further stake-building remain unclear, we view the move as a clear endorsement of the strategic attractiveness of Delivery Hero’s asset base for Uber,” JPMorgan analysts said.
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The Berlin-based food-delivery company has seen trading volume in its shares increase as former majority shareholder Prosus has sought to comply with European Commission conditions for Prosus’ acquisition of Just Eat Takeaway.
The commission required the company to cut its Delivery Hero stake to below 10% by late summer to address competition concerns.
Uber bought a 4.5% stake in Delivery Hero from Prosus in April.
Activist investor Aspex Management also raised its stake to about 15% in May as part of a campaign against the company’s chief executive, Niklas Oestberg. In March, Aspex urged him to resign and pushed for a strategic overhaul at Delivery Hero, including a withdrawal from entire regions.
Delivery Hero’s annual general meeting is scheduled for June 23.