Uber Technologies Inc.’s proposed $14.8 billion takeover of Delivery Hero SE is drawing early scrutiny from South Korean competition authorities, as regulators examine how the transaction could reshape the country’s ride-hailing and food-delivery markets.
South Korea’s Fair Trade Commission has received Uber’s request for a preliminary review of the planned acquisition, according to Aju Press. Delivery Hero indirectly controls Woowa Brothers, the operator of Baemin, South Korea’s largest food-delivery platform.
The review puts a spotlight on the potential combination of Uber’s mobility business with Baemin’s dominant position in food delivery. The KFTC is considering the transaction primarily as a conglomerate merger because the companies operate in different markets, Aju Press reported, citing the regulator. Authorities plan to assess potential effects on competition, rival companies and the options available to consumers and merchants.
One focus is whether common ownership could allow Uber to more closely connect transportation and delivery through membership programs, advertising or promotions. Uber itself has pointed to opportunities to increase customer activity across mobility and delivery services and broaden marketing offerings for merchants, according to the Aju Press report, which cited the KFTC.
The companies enter the review with sharply different competitive positions in South Korea. Uber Taxi recorded about 650,000 monthly active users in February, compared with 13.58 million for market leader Kakao Mobility, according to KFTC figures reported by Aju Press. Baemin, meanwhile, had 23.4 million monthly active users in April, versus 13.15 million for Coupang Eats and 4.21 million for Yogiyo.
Uber is offering €41.50 a share in cash for Delivery Hero, valuing the German food-delivery company’s equity at roughly $14.8 billion, according to Aju Press. The tender offer is scheduled to remain open until Nov. 5 and requires acceptance representing at least 50% of Delivery Hero’s shares plus one additional share.
The KFTC expects the transaction, subject to regulatory clearances in relevant jurisdictions, could be completed in the second half of 2027, Aju Press reported. Uber would retain Delivery Hero operations in 50 markets, including South Korea, while businesses in 14 other markets are slated to be sold separately to US investment firm SSW Partners if the takeover closes.
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The transaction would mark another push by Uber into South Korea after a series of earlier attempts to establish a larger presence in the country. Uber withdrew its UberX service in 2015 following regulatory opposition, according to Aju Press. Its Uber Eats business entered South Korea in 2017 but exited two years later amid intense competition from established delivery operators.
Uber returned to the country’s taxi market through a joint venture with T Map Mobility in 2021. Acquiring Delivery Hero would now give the US company control of an established Korean delivery platform alongside its ride-hailing operation, making potential links between the two services a central issue for competition regulators.
Baemin has previously been at the center of a major Korean antitrust case. When Delivery Hero acquired the business, the KFTC required the German company to divest Yogiyo, another Korean delivery platform, as a condition of approval, according to Aju Press.
The latest proceeding is preliminary rather than a final merger review. Companies can voluntarily seek the KFTC’s assessment before formal notification requirements take effect, while acquisitions conducted through tender offers are generally reported after shares have been acquired, Aju Press reported, citing the commission.
The regulatory examination comes as other potential investors step away from Baemin. Naver said on Sept. 17 that it had decided not to pursue a stake in the delivery platform because of changes in the business environment, according to Aju Press.
The KFTC said it intends to examine Uber’s proposed transaction under South Korea’s competition-law standards and procedures, according to the original report by Kim Dong-young for Aju Press.
Source: Aju Press
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