Just Eat plans to merge with Dutch rival Takeaway.com, which would create a company with 40m customers across 20 countries.
Today (29 July), it was reported that Just Eat and Takeaway.com are close to reaching a deal, which would see the two companies merge into one of the world’s biggest online food delivery firms, with 40m customers across 20 countries. Shares in Just Eat increased by 25pc after the potential deal was announced.
Both companies have a market value of around £4.5bn, and together they processed 360m orders in 2018. Due to merger rules in the UK, the two companies have until 24 August to receive final approval from investors and close the deal.
A number of specific terms have already been agreed on. If the deal is finalised, Jitse Groen, founder and CEO of Takeaway.com, will become chief executive of the merged company, while Paul Harrison, CFO of Just Eat, will become CFO of the new firm. The company will be headquartered in Amsterdam but will have a premium listing on the London Stock Exchange.
Food delivery deals
The deal comes after Amazon announced a $575m investment in Deliveroo in May, which had a negative effect on Just Eat’s share price. However, Amazon’s investment has been halted by the UK’s competition watchdog until a full inquiry has been completed.
It is not the first time Takeaway.com has joined a competitor to strengthen its operations in Europe. In 2018, the company paid €930m for the German operations of Delivery Hero.
Meanwhile, Just Eat’s Canadian delivery service, SkipTheDishes, has been growing rapidly since the introduction of a bilingual service, according to BBC. Peter Duffy, Just Eat’s interim chief executive, said that 4m new customers joined the platform in the last year.
Just Eat also runs iFood in Mexico and Brazil, and Menulog in Australia and New Zealand. The company’s half-year financial results will be released this Wednesday (31 July).