Germany's Delivery Hero acquires Foodpanda

Delivery Hero, a Germany-based food takeaway company, has acquired its rival food delivery company Foodpanda.

Both food-delivery companies are backed by German e-commerce firm Rocket Internet. Rocket Internet will receive Delivery Hero stock in exchange for the deal, propelling its stake in the company to 37.7%.

The combined business will process more than 20 million orders a month, and operate in 47 countries. Rocket Internet said that the transaction leads to "reduced complexity at the group level for Rocket Internet" in a statement.

"The transaction strengthens Delivery Hero's global leadership position in online food ordering and delivery, with the combined group processing over 20 million orders per month across 47 countries," it added.

Last year, foodpanda expanded into 20 more countries and launched a mobile app for iOS and Android.

The delivery company has been struggling with sales in India and other Asian countries. In October 2016, foodpanda shut down its operations in Indonesia after several months in search of a buyer.