German company to sell Yogiyo to acquire Baedal Minjok
Germany’s Delivery Hero showed its willingness to accept conditional approval of the Korean government in its acquisition of the latter country’s top food delivery app Baedal Minjok.
Earlier this week, the Korea Fair Trade Commission (KFTC) obliged Delivery to sell shares in its subsidiary, Delivery Hero Korea, which operates the country’s No. 2 player Yogiyo.
In response, Delivery Hero came up with a press release welcoming the approval while showed some regrets over the decision involving Yogiyo.
Delivery Hero agreed to purchase a controlling stake in Woowa Brothers, which runs the Baedal Minjok app, in a $4 billion deal, Korea’s largest contract in the country’s start-up business.
“The approval of our partnership with Woowa is great news for both our companies and the broader delivery industry. We are thrilled to be one step closer to making this collaboration come to life, and I’m particularly excited to welcome Kim Bong-jin to our family of entrepreneurs upon closing,” Delivery Hero CEO Niklas Ostberg said.
“We are deeply saddened by the required condition to divest Delivery Hero’s subsidiary Delivery Hero Korea in South Korea. I want to personally express our gratitude to the team for all these years of collaboration and quest to create an amazing customer experience.”
In response, Woowa Brothers’ founding CEO Kim Bong-jin also expressed his big hype over the M&A.
“There is tremendous potential in the Korean food delivery market, and we are very excited to partner up with Delivery Hero to benefit from their knowledge around logistics, technology, and scaling businesses,” Kim said.
“Our partnership will move the whole ecosystem forward, and we will work together to innovate the delivery industry in Asia.”
Delivery Hero is required to sell its 100 percent stake in Delivery Hero Korea over the next six months. The deadline can be delayed for six more months under certain conditions.