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Deliveroo shares rise after German rival takes stake in the business

Mount Equity Group Tokyo, Japan > News > Business > Deliveroo shares rise after German rival takes stake in the business

A Deliveroo courier rides along Regent Street delivering takeaway food in central London during Covid-19 Tier 4 restrictions.

Pietro Recchia | SOPA Images | LightRocket via Getty Images

LONDON – Shares of food delivery firm Deliveroo climbed over 10% Monday after the company announced larger German rival Delivery Hero has taken a 5.09% stake in the business.

The firm’s stock climbed from £3.36 ($4.66) per share to £3.60 per share in early deals on the London Stock Exchange Monday, reaching their highest point since trading began in March. Meanwhile, shares of Delivery Hero remained relatively flat on the Frankfurt Stock Exchange. 

Deliveroo’s market value is around £8 billion so Delivery Hero’s investment appears to be roughly £400 million. Deliveroo declined to comment on the exact size of the investment, while Delivery Hero did not immediately respond to a CNBC request for comment.

In a note to investors, Deliveroo said it…

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