Delivery Hero orders up South Korea’s Woowa for $4bn in world’s biggest food app deal

Delivery Hero orders up South Korea’s Woowa for $4bn in world’s biggest food app deal
South Korea, with a dense population and high smartphone use, is the fourth-biggest market for online food orders.
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Updated 14 December 2019

Delivery Hero orders up South Korea’s Woowa for $4bn in world’s biggest food app deal

Delivery Hero orders up South Korea’s Woowa for $4bn in world’s biggest food app deal
  • The deal, announced on Friday by Woowa, is the biggest global play so far for a food delivery app

SEOUL: Germany’s Delivery Hero has agreed to buy South Korea’s top food delivery app operator Woowa Brothers for $4 billion and form a joint venture to take on heavyweights like Uber Eats in other fast-growing Asia markets.

The deal, announced on Friday by Woowa, is the biggest global play so far for a food delivery app, one of the hottest tech sectors around. Woowa said the sale was “a survival strategy” in an intensely competitive market and also the biggest deal involving a South Korean internet firm.

South Korea, with a dense population and a high smartphone penetration rate, is the world’s fourth-biggest market for online food orders. A huge jump in the number of single people living on their own is also propelling the boom in food delivery services.

Delivery Hero’s Yogiyo app ranks second behind Woowa’s Baedal Minjok, but the sector leader faces stiff competition from rivals such as e-commerce firm Coupang, backed by Japan’s deep-pocketed SoftBank Group. Uber Technologies Inc’s UberEats restaurant delivery business pulled out of South Korea earlier this year, reflecting the intensity of competition.

“The (food) delivery market has been flooded with gigantic Japan-backed capital and influential online platforms, leading Woowa to factor in partnership as a survival strategy,” said a spokesman at Woowa Brothers.

South Korea’s online market for food delivery and pickup has more than doubled over the past five years to $5.9 billion — bigger than Japan and Germany’s markets combined, and trailing only China, the US and the UK, Euromonitor data also showed. Euromonitor expects the South Korean market to jump to $9 billion by 2023.

It wasn't immediately clear whether the deal between the two leading players in the market would face antitrust hurdles.

Under terms of the deal, Delivery Hero will acquire an 87 percent stake held by Woowa investors such as Goldman Sachs, Singapore fund GIC, Hillhouse Capital and Sequoia Capital. Delivery Hero will acquire the remaining 13 percent owned by Woowa’s management in the future, said a Woowa spokesperson, without elaborating on a timeline.

Established in 2010 as a food delivery firm, Woowa Brothers — ‘woowa’ means elegant in Korean — grew fast to become the country's top online food delivery services firm, taking over 30 million orders per month, and expanded into the business of provided shared kitchen space for restaurateurs avs well as moving into Vietnam.

Founder and Chief Executive Officer Kim Bong-jin, 43, will head up the newly formed joint venture with Delivery Hero, based in Singapore, to tap into the booming food delivery market in Asia. Regional players like Singapore-based Grab and Indonesia’s Gojek are already well implanted.

The growing global food delivery trade has triggered a wave of dealmaking and rising valuations.

The purchase of Britain-based Just Eat is set to top the Delivery Hero-Woowa deal: Dutch firm Takeaway.com is in talks to buy Just Eat in a transaction that values the latter at £4.3 billion ($5.52 billion), an offer that Dutch-based technology group Prosus recently topped.

For Delivery Hero, buying Woowa expands its presence in the fast-growing Asia market even as Europe becomes more competitive.


Copper hits record high on higher demand hopes

Copper hits record high on higher demand hopes
Updated 3 min 21 sec ago

Copper hits record high on higher demand hopes

Copper hits record high on higher demand hopes
  • Bullish investors bet that demand for copper will increase further as the world economy recovers from COVID-19 slumps and as investments into green energy sectors ramp up

HANOI: Copper prices touched record highs in both London and Shanghai markets on Monday on hopes for improved demand amid tightening supply.

Three-month copper on the London Metal Exchange rose to an all-time high of $10,747.50 a ton earlier in the session before easing to $10,694 a ton, still up 2.7 percent.

The most-traded June copper contract on the Shanghai Futures Exchange closed up 4.8 percent to 77,720 yuan ($12,094.62) a ton, after scaling a peak of 78,270 yuan earlier. Sentiment has been boosted following record high LME prices since 2011 hit on Friday.

Bullish investors bet that demand for copper will increase further as the world economy recovers from COVID-19 slumps and as investments into green energy sectors ramp up, while prices were also supported by tight supply in the concentrate market.

“Prices continue to rise as the world is talking about the global recovery and the need for metals,” said Malcolm Freeman, a director at UK broker Kingdom Futures, adding that the LME contract “looks set to attempt $11,000 on a technical basis.”

However, he noted that industrial players are not buying at this price level.

ShFE aluminum surpassed 20,000 yuan a ton, rising as much as 3.8 percent to 20,445 yuan a ton, its highest since January 2010, while ShFE zinc hit its highest since March 2008 of 23,065 yuan a ton. LME aluminum rose 2 percent to $2,590.50 a ton and zinc advanced 1 percent to $3,045 a ton.

A group of 15 key copper smelters in China have agreed to cut their purchases of raw material copper concentrate in 2021 by 8.8 percent year-on-year, state-backed research house Antaike said.


Egypt in talks with international firms to invest in data centers, says minister

Egypt is in talks with international companies to boost investment in data centers and information technology. (Shutterstock/Illustrative)
Egypt is in talks with international companies to boost investment in data centers and information technology. (Shutterstock/Illustrative)
Updated 10 May 2021

Egypt in talks with international firms to invest in data centers, says minister

Egypt is in talks with international companies to boost investment in data centers and information technology. (Shutterstock/Illustrative)
  • The aim is to take advantage of the geographical location of Egypt and the passage of a large number of international data cables between Asia and Europe

RIYADH: Egypt is in talks with international companies to boost investment in data centers and information technology, the country's communications minister revealed.

The aim is to take advantage of the geographical location of Egypt and the passage of a large number of international data cables between Asia and Europe, reaching North America, said Minister of Communications and Information Technology,Amr Talaat.

It is part of a wider push to build an integrated digital society, Al Arabiya reported.

That is why the budget for the information technology sector and the ministry’s budget has been growing over the last two years and will continue to grow over the next three years, he added.

“We have started building the Egypt digital platform that provides more than 70 digitized government services at the present time, and we look forward to increasing it to 170 services by the end of this year, and then increasing to include all government services within two years until 2023,” said the minister.


Egyptian prime minister discusses industry localization with US firm Bechtel

According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation. (AFP/File Photo)
According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation. (AFP/File Photo)
Updated 10 May 2021

Egyptian prime minister discusses industry localization with US firm Bechtel

According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation. (AFP/File Photo)
  • Mostafa Madbouly said the country was currently localizing industrial production with the aim of rendering it more sustainable

CAIRO: Egyptian Prime Minister Mostafa Madbouly held discussions with US construction firm Bechtel on ways to increase the use of local products and components in the development of projects in Egypt.

According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation across a number of sectors.

The prime minister said there were several projects in Egypt being developed in cooperation with American companies, like the petrochemical complex in the Ain Sokhna area. He added that he is following up on these megaprojects.

Madbouly also said that he welcomed the cooperation proposed by Bechtel in constructing a sixth metro line and in managing new cities.

Bechtel’s Infrastructure Global Business Unit President Shaun Kenny expressed his enthusiasm to work with the Egyptian government on megaprojects currently being implemented, especially the metro line.

The Egyptian prime minister stated that the country is currently localizing its industrial production with the aim of rendering it more sustainable.


Egypt’s Cleopatra Hospitals bid to buy Alameda Healthcare halted

Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted. (Cleopatra Hospitals Group)
Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted. (Cleopatra Hospitals Group)
Updated 10 May 2021

Egypt’s Cleopatra Hospitals bid to buy Alameda Healthcare halted

Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted. (Cleopatra Hospitals Group)
  • The proposed deal was originally announced by Cleopatra in late December 2020

RIYADH: Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted.

It made the disclosure in a filing to the Egyptian Stock Exchange on Monday.

The proposed deal was originally announced by Cleopatra in late December 2020, with an estimated value of about $500 million.

But it was quickly followed by an announcement from the Egyptian Competition Authority saying that it did not agree in principle to the acquisition.

It highlighted the potential consolidation of Cleopatra’s dominance over hospitals around Cairo and Giza.

Alameda Healthcare’s network includes four tertiary care hospitals in Cairo, two of which are currently being constructed. Once the facilities are fully commissioned Alameda Healthcare will have a capacity of 890 beds, according to its website. The network also includes facilities in Kuwait and London, outpatient clinics, diagnostic centers, specialist centers, pharmacies, and a rehabilitation center.


Saudi Kafalah small business loan program expands rapidly in Q1

Some 215 private sector business women benefited from the scheme during the first quarter of this year, compared to 64 during the year-earlier period. (Shutterstock/File Photo)
Some 215 private sector business women benefited from the scheme during the first quarter of this year, compared to 64 during the year-earlier period. (Shutterstock/File Photo)
Updated 10 May 2021

Saudi Kafalah small business loan program expands rapidly in Q1

Some 215 private sector business women benefited from the scheme during the first quarter of this year, compared to 64 during the year-earlier period. (Shutterstock/File Photo)
  • Businesses in Riyadh, the Eastern Region and Makkah claimed the lion’s share of assistance

RIYADH: The Saudi SMEs loan guarantee program ‘Kafalah’ helped 1621 businesses during the first quarter of 2021 — up 162 percent year-on-year, Al Eqtisadiah reported.

Guarantees increased by about 150 percent to SR2.9 billion and financing reached SR3.6 billion, the newspaper said.

Some 215 private sector business women benefited from the scheme during the first quarter of this year, compared to 64 during the year-earlier period.

The value of guarantees during the first quarter amounted to SR142 million and the value of financing reached SR157 million.

The most prominent sectors benefiting included the wholesale and retail trade, construction, accommodation services, food, and manufacturing industries, according to Kafalah.

Businesses in Riyadh, the Eastern Region and Makkah claimed the lion’s share of assistance.

The program will mostly target the tourism and entertainment sectors this year, in addition to the communications and information technology sectors, said Kafalah Director-General Homam Bin Abdulaziz Hashem.

The program was founded in 2006 as a joint initiative between the Kingdom’s ministry of finance and Saudi commercial banks to help overcome SME financing constraints.