Delivery Hero Gets Woowa Deal Approval

German giant Delivery Hero will sell South Korean food delivery app Yogiyo a part of the conditions for regulatory approval of its $4 billion takeover of the country’s food delivery app owner Woowa Brothers.

German giant Delivery Hero will sell South Korean food delivery app Yogiyo a part of the conditions for regulatory approval of its $4 billion takeover of the country’s food delivery app owner Woowa Brothers.

Shares in Delivery Hero rose 3.6 percent on Tuesday morning after accepting the decision, pointing out in a regulatory filing that it expected to close the deal in the first quarter of next year.

“We are deeply saddened by the required condition to divest Delivery Hero’s subsidiary. We… will work hard to ensure that this transition is as smooth as possible for all impacted employees,” Delivery Hero’s Chief Executive and co-founder Niklas Östberg said in a statement, while welcoming the regulatory approval.

On Monday, the Korea Fair Trade Commission said it would approve the takeover on condition that Delivery Hero sold its entire stake in food delivery app Yogiyo within six months, with the possibility of an extension.

The commission’s chief Joh Sung-wook said that the sale would ease concerns that diners would end up paying more under the current deal, while allowing the synergy that Delivery Hero cited as the reason for the acquisition.

“Delivery Hero said the purpose of this deal is to combine its logistics technology and Woowa’s marketing ability, and I think this is sufficiently possible,” she told a briefing.


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