Benzinga | Jun 21, 2021 12:01PM EDT

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

* Uber Technologies Inc (NYSE: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 (NYSE: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.