(Reuters) – Delivery Hero said on Friday it was not considering making an offer for its British rival Deliveroo, days after the German company acquired a 5.09% stake in the London-listed online food delivery company.
Demand for food delivery surged during lockdowns, but that could take a hit as restaurants reopen. Many companies have also been teaming up to bolster their services and get access to new markets in the face of competition.
Delivery Hero cannot bid for Deliveroo for six months, according to British takeover rules, but the Frankfurt-listed company said it could choose to make an offer with the agreement of Deliveroo’s board and under some other circumstances.
Founded in 2011, Delivery Hero operates in about 50 countries, with particular strength in Asia, where it owns the Foodpanda brand. However, it does not operate in Britain, which is Deliveroo’s largest market.
Despite a jump in sales, Delivery Hero and Deliveroo continue to make losses.
Separately on Friday, South Korea’s GS Retail Co Ltd said it had partnered with two private-equity firms to buy Delivery Hero’s food delivery app, Yogiyo, in a deal valued at 800 billion won ($686.41 million).
($1 = 1,165.4800 won)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur)