Uber To Acquire Remaining Cornershop Stake For 29M Shares Valued At $1.4B

Uber Technologies Inc UBER inked an agreement with Cornershop Global LLC’s minority shareholders to acquire its remaining 47% stake in online grocery provider Cornershop for 29 million Uber shares.
The purchase price is worth $1.4 billion based on Uber’s Friday closing price of $49.7.
Cornershop will become Uber’s wholly-owned subsidiary under the arrangement.
Uber had acquired a majority stake in Cornershop in Oct. 2019.
Uber bolstered its food delivery business with the $2.65 billion acquisition of Postmates in 2020, and adding groceries and other goods, including alcohol, by buying Drizly and its recent alliance with GoPuff, Bloomberg reported.
The acquisitions aimed to diversify its revenue stream when the pandemic hit its ride-hailing business. Walmart Inc WMT and Instacart Inc presently dominate the budding grocery delivery market.
In July, Instacart prosecuted Cornershop for allegedly stealing the company’s intellectual property, including listings of inventory at grocery stores.
UBER held $5.7 billion in cash and equivalents as of Mar. 31, 2021.
Price action: UBER shares traded lower by 2.70% at $48.36 on the last check Monday.