Delivery Hero, a Berlin-based food-delivery company, has made a second attempt to purchase a Saudi rival and has failed after the local competition overseer vetoed its takeover offer for The Chefz.
Delivery Hero’s thwarted attempt to acquire Riyadh-based firm
Saudi Arabia’s General Authority for Competition did not divulge any particulars or the reasons for its verdict in a statement released on 5th December 2021 but stated that Germany’s Delivery Hero pursued to purchase all of the Riyadh-based company. The Chefz however indicated that discussions were still ongoing.
Chief Executive Officer of The Chefz, Abdulrahman Alshabanat, indicated in an interview that the firm began negotiating with Delivery Hero in the dawn of 2021. The Saudi firm chose Delivery Hero after the reception of several offers that were higher as it possessed an international name and the know-how of the industry, he stated.
The main agenda of the acquisition wasn’t a fiscal one, instead, the firm cared most about opting for the firm that had the essential experience in the market, he stated. Abdulrahman Alshabanat indicated that his only focus and strategy was to grow the firm.
The Chefz most recent investment round was held in 2019 with the support of numerous Saudi venture capital players inclusive of Dammam-based Vision Ventures, Abdulrahman Alshabanat stated without revealing any fiscal details.
The German-based firm is struggling in its efforts to extend its presence in the Middle East’s most humongous economy by acquiring its competitors, as agreement discussions in the dawn of 2021 with Saudi e-commerce start-up Mrsool disrupted and ended in disagreement. In another part of the region, the Berlin-based food-delivery firm has recently matured its roots by purchasing the Dubai grocery delivery portal – InstaShop.
The Chefz, which began its enterprise as an application that focussed on home delivery for fine dining restaurants before extending its services in the kingdom, rivals against Hungerstation by Delivery Hero and regional companies like Jahez International Company. Delivery Hero’s local operations also encompass Yemeksepeti and Talabat in Turkey.
Delivery Hero declined to comment on the matter.
