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Delivery Hero: Cartel Office causes delays

Delivery Hero has problems in South Korea. They want to buy Woowa Brothers there. In return, the local cartel office demands that Delivery Hero separate from the daughter Yogiyo. One rejects this. It is possible to make alternative suggestions. However, there is apparently little leeway here.

In December 2019, the takeover of Woowa Brothers was agreed, the company value is seen at 3.6 billion euros. The closing should take place by the end of 2020, but is likely to be delayed by months following the recent problems.

For the analysts at Independent Research, a failure of the takeover would be negative. The Koreans are fast growing and profitable. In addition, the size of the market speaks in favor of the takeover.

The analysts stick to the hold recommendation for the shares of Delivery Hero. The price target remains at EUR 105.00.

Their estimates are also confirmed. A loss per share of EUR 3.30 is expected for 2020. In 2021 it should be -3.03 euros per share.

The ongoing pandemic is ensuring that many consumers continue to have food delivered to their homes. Delivery Hero can benefit from this.

Delivery Hero shares gain 0.3 percent this morning to EUR 96.54.

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