Delivery Hero Shares Slump After Report That Meituan Plans Saudi Launch
By Helena Smolak
Delivery Hero's shares slumped after Bloomberg reported that China's Meituan is set to debut in Saudi Arabia with its app KeeTa, a move analysts view as a competitive threat to the German food-delivery company.
At 1507 GMT, shares in Delivery Hero had dropped 16% to EUR25.94. The stock trades 3.7% higher year to date and reached its lowest point within the last 12 months in February, at EUR14.92.
Stakes are high as Delivery Hero is market leader with its brand HungerStation in Saudi Arabia, the largest food delivery market in the Middle East and North African region, with a gross merchandise value of over EUR3 billion based on Bernstein estimates, its analysts said in a note.
The region is Delivery Hero's largest market after Asia and accounts for nearly a quarter of its gross merchandise value, according to first-quarter results figures.
Meituan had its first international expansion into Hong Kong last year, climbing within a very short time to rank number two there, behind London-listed Deliveroo, according to the analysts. It has had it eye on the Middle East market for some time, they added.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
April 26, 2024 11:24 ET (15:24 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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