Delivery heroA German online food delivery company said on Friday it is taking full ownership of its Saudi subsidiary in a deal worth $297 million.

The company said it has bought the remaining 37% stake in HungerStation, which operates Delivery Hero in Saudi Arabia – in a deal that represents the Berlin-based firm’s bid to expand its presence in the Middle East food delivery market.

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Delivery Hero shares were down 1.4% in afternoon trading.

“We believe in the vision, ambition and potential of the Kingdom of Saudi Arabia by 2030 and are committed to contributing to its continued success through HungerStation,” Niklas Östberg, CEO and co-founder of Delivery Hero, said in a statement.

Delivery Hero is one of Europe’s largest food delivery companies with a market value of $10 billion.

The company is having trouble in its home market in Germany, where it was forced to quit in December 2021 after losing out to Dutch Just Eat Takeaway.com.

Food delivery is a highly competitive industry with many companies operating in the space. This led to the inevitable consolidation where various companies acquired competitors to achieve scale.

HungerStation connects more than 10,000 partners, including restaurants and grocery stores, with customers, Delivery Hero said in a statement Friday.

The deal will help the firm build stronger ties with HungerStation and the rest of the company’s portfolio, Delivery Hero added.