Takeaway.com wins Just Eat merger battle, creating new food delivery giant

Andrew Cummings
January 12, 2020

Shareholders in Just Eat have given the green light to a £6.2bn merger with Dutch food delivery firm Takeaway.com, which will create one of the largest food delivery groups in the world.

Just Eat provides an online website and app to enable customers to buy food from their local takeaway restaurants, taking a cut from delivery orders.

Chief executive officer Jitse Groen said: "Just Eat Takeaway.com is a dream combination and I am very much looking forward to leading the company for many years to come".

Nonetheless, Prosus NV's proposal involved an 800 pence per share all-cash takeover for the London-based online food ordering company, however, shortly after Prosus NV had heightened its bid last month, Takeaway took its slated merger hostile and offered its proposal directly to Just Eat Plc. shareholders. The tender period for both of the rival bidders would conclude by Friday (January 10th). Before Takeaway.com submitted its final bid of £9.16 a share.

The deal comes after Just Eat bought the United Kingdom firm HungryHouse and Takeaway.com acquired Delivery Hero's German business in 2018.

He thanked Just Eat staff for their "patience in what must have been an uncertain time".

The Dutch firm announced an all-stock bid for Just Eat in late July valuing the British company at about 731 pence per share, or 5bn pounds.

Prosus argued that Takeaway was underestimating the investment needed to fend off rivals such as Uber Eats and Amazon.com.

"Our core operating segments are growing fast with a significant runway ahead of them", he said. This news will mean increased competition for European startups like Deliveroo and newly crowned unicorn Glovo.

Van Dijk said Prosus would remain disciplined in how it allocates its capital and the price that it would offers for such transactions in future.

Prosus had claimed that the Takeaway.com offer would be "highly value destructive" and that the all-cash acquisition by Prosus would create better value for shareholders.

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