One of Europe’s biggest food delivery firms doubles down on Middle East with $300 million Saudi deal

Delivery Hero, the German on-line meals supply firm, mentioned Friday that it’s taking full possession of its Saudi subsidiary in a transaction valued at $297 million.

The firm mentioned it has purchased the remaining 37% stake in HungerStation, which operates Delivery Hero in Saudi Arabia — in a deal that represents an effort from the Berlin-headquartered agency to increase its presence within the Middle Eastern meals supply market.

associated investing news

Shares of Delivery Hero had been down 1.4% throughout afternoon commerce.

“We believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition and potential, and are committed to contributing to its ongoing success through HungerStation,” Niklas Östberg, CEO and Co-Founder of Delivery Hero, mentioned in a press release.

Delivery Hero is one among Europe’s greatest meals supply corporations, commanding a $10 billion market worth.

The agency has had troubles in its house market of Germany, the place it was compelled to give up in December 2021 after shedding out to Netherlands-based Just Eat Takeaway.com.

Food supply is an intensely aggressive sector with a number of corporations working within the house. This has led to inevitable consolidation, with numerous corporations buying rivals to realize scale.

HungerStation connects greater than 10,000 companions, together with eating places and grocery shops, with clients, Delivery Hero mentioned in a press release Friday.

The deal will assist the agency construct stronger ties with HungerStation and the remainder of the corporate’s portfolio, Delivery Hero added.