Uber’s Sunday (May 17) acquisition offer of 1.9 of its shares for each Grubhub share is not enough to close a deal, but discussions are still ongoing, according to a Wall Street Journal (WSJ) report citing sources familiar with the talks.
Uber CEO Dara Khosrowshahi said he could go up to 1.95, but that is still lower than Grubhub’s asking price of 2.15 Uber shares per Grubhub share. It’s unlikely the two food delivery powerhouses will close a deal in the coming days, the sources told the WSJ. Uber had previously rejected that offer.
European food delivery startups Delivery Hero and Just Eat Takeaway.com NV were also said to be pondering an offer to acquire Grubhub, but they will likely step aside while Uber is making a play, sources told the WSJ.
Last week Uber offered about $60 per Grubhub share, based on Wednesday (May 13) trading. If a merger deal eventually goes through, the combined company would control more than half of the food delivery market across the U.S.
Morgan Stanley analyst Brian Nowak said in a note on Wednesday (May 13) that if the two delivery giants merged, cost savings could be twice as much as the $300 million Uber and Grubhub estimated.
Pending M&A regulations could interfere with the merger even if Uber and Grubhub agree on terms. The Pandemic Anti-Monopoly Act proposed by Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez would pause M&A amid the global coronavirus pandemic.
Stay-home mandates amid the crisis caused an uptick in the demand for food delivery as most other businesses saw revenue evaporate.
Featured News
Public Interest Groups Push for Rehearing on FCC Net Neutrality Case
Feb 18, 2025 by
CPI
Australian Regulator Backs Virgin Australia-Qatar Airways Alliance
Feb 18, 2025 by
CPI
EU Scales Back AI Regulations to Compete with US in Global Tech Race
Feb 18, 2025 by
CPI
Democratic Lawmakers Raise Concerns Over Musk’s Task Force and Taxpayer Data Security
Feb 18, 2025 by
CPI
UK’s CMA Provisionally Approves Poultry Feed Merger
Feb 18, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – International Criminal Enforcement
Jan 23, 2025 by
CPI
The Antitrust Division’s Recent Work to Combat International Cartels
Jan 23, 2025 by
Emma Burnham & Benjamin Christenson
Information Sharing: The New Frontier of U.S. Antitrust Enforcement
Jan 23, 2025 by
Brian P. Quinn, Casey Kovarik & Michael Tubach
The Key Role of Guidelines on Exchanges of Information Among Competitors and the Divergent Transatlantic Paths
Jan 23, 2025 by
Rosa Abrantes-Metz & Albert Metz
Leniency, Whistleblowers, and Compliance
Jan 23, 2025 by
Richard Powers, Tara O’Malley & Cory Gordon