Delivery Hero SE will receive regulatory approval of its strategic partnership with Woowa Brothers Corp. The company expects its final written approval and closing to occur in the first quarter of 2021. This transaction includes the formation of a joint venture in Singapore. The transaction agreements were signed on December 13th, 2019 and has been under review by the Korea Fair Trade Commission. The transaction consideration consists of €1.7 Billion cash and 40 Million in Delivery Hero shares.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “The approval of our partnership with Woowa is great news for both our companies and the broader delivery industry. We are thrilled to be one step closer to making this collaboration come to life and I’m particularly excited to welcome Bongjin Kim to our family of entrepreneurs upon closing. His team brings tremendous experience and together, we will be able to expand and enhance our presence across Asia. We are deeply saddened by the required condition to divest Delivery Hero’s subsidiary Delivery Hero Korea in South Korea. I want to personally express our gratitude to the team for all these years of collaboration and quest to create an amazing customer experience. We wish Delivery Hero Korea the best for the future, and will work hard to ensure that this transition is as smooth as possible for all impacted employees.”
Bongjin Kim, CEO and Founder of Woowa, said: “There is tremendous potential in the Korean food delivery market and we are very excited to partner up with Delivery Hero to benefit from their knowledge around logistics, technology, and scaling businesses. Our partnership will move the whole ecosystem forward, and we will work together to innovate the delivery industry in Asia.”