European equity markets climbed sharply on Monday, reaching their highest levels since March 2 as easing Middle East tensions and renewed takeover activity boosted investor confidence. Falling oil prices and reports of a potential Uber bid for Delivery Hero helped drive gains across regional markets.
The pan-European Stoxx 600 rose more than 0.6% shortly after the opening bell, recovering losses triggered by escalating geopolitical tensions earlier this year. France’s CAC 40 and Germany’s DAX both advanced 1.1%, while trading volumes remained relatively light due to a public holiday in the United Kingdom that kept the FTSE 100 closed.
Global Market Rally Led by Lower Oil Prices
European stocks tracked a broader global rally after a strong overnight session in Asia, where Japan’s Nikkei 225 crossed the historic 65,000 level for the first time.
Investor sentiment improved following reports that concerns surrounding shipping disruptions in the Strait of Hormuz were beginning to ease. The development sparked a sharp sell-off in energy markets, sending crude oil prices down by more than 5%.
Oil prices extended losses after President Donald Trump said on Truth Social that diplomatic negotiations with Iran were “proceeding in an orderly and constructive manner.” Trump also stated that he had instructed U.S. representatives “not to rush into a deal,” suggesting negotiations were continuing without immediate pressure.
The decline in energy prices helped ease inflation concerns and supported broader risk appetite, putting European equities on track for a fifth consecutive day of gains.
Delivery Hero Shares Surge on Uber Takeover Interest
On the corporate front, Germany’s Delivery Hero jumped more than 10% after the Financial Times reported that Uber is considering an improved takeover offer for the Berlin-based food delivery company.
The rally followed confirmation from Delivery Hero that it had received a formal acquisition proposal from Uber valued at €33 ($38.29) per share.
Inside the Multi-Billion Dollar Negotiations
Initial Offer
Delivery Hero confirmed over the weekend that Uber submitted a takeover proposal worth €33 per share.
Valuation
At that price, the company’s market capitalization is valued at more than €10 billion.
Rejected Proposal
The Financial Times reported on Sunday that a subsequent €38 per share proposal was rejected by one of Delivery Hero’s major shareholders. Uber’s board reportedly met on Saturday to discuss a revised offer.
Despite the acquisition interest, Delivery Hero maintained a cautious public stance, stating that it “remains fully focused on executing its strategic review process” and that further updates would be provided when appropriate.
Food Delivery Sector Consolidation Accelerates
Uber’s pursuit of Delivery Hero comes shortly after the company increased its stake in the food delivery group from roughly 7% to about 19.5% last week, making Uber the company’s largest shareholder.
Although the development initially pushed Uber shares down 2.4% on Friday, the potential merger highlights the ongoing consolidation trend across the global food delivery industry.
If completed, the deal would become the latest major transaction in a sector already reshaped by DoorDash’s acquisition of Deliveroo and Prosus’s buyout of Just Eat last year.