Takeaway to buy Just Eat for $10.1 billion

Amsterdam-based Takeaway.com is set to buy Just Eat in an 8.2 billion pound or $10.1 billion deal — to strengthen its presence in the online food delivery market, Reuters reported.
Takeaway.com online food delivery
Just Eat, founded in Denmark in 2000, competes with Amazon-backed Deliveroo and Uber Eats.

Takeaway and Just Eat said they will have leadership positions in many of the world’s largest food delivery markets, including the United Kingdom, Germany, the Netherlands and Canada.

Amazon led a $575 million fundraising in Deliveroo in May, though Britain’s competition regulator is considering a full investigation into the deal.

Investor Cat Rock, which has holdings in both companies, has been pushing Just Eat to merge with a rival such as Takeaway, which has been driving sector consolidation.

Cat Rock holds 4.9 percent stake in Takeaway, according to a filing with Dutch market regulator AFM. Cat Rock’s stake in Just Eat stands at 2.6 percent, according to Bloomberg Data.

Takeaway, which bought the German activities of Delivery Hero for 930 million euros this year, says it is the leading food deliverer in continental Europe, Israel and Vietnam.

Investec analysts said there was limited geographical overlap between the two, with the exception of Switzerland.

This means the opportunity revolves around leveraging technology spend and administrative costs, in our view, and the sharing of best practice, Investec said.

Just Eat, which originally focused on independent takeaway restaurants that offered pick-up or delivery services, charges a fee to join its platform and earns a commission on each order.

Just Eat has upgraded its technology, launched its own delivery services using experience gained from its purchase of Canada’s SkipTheDishes.com, and struck deals with fast-food chains like Burger King, Subway and KFC.

Mike Evans, Just Eat’s chairman, will chair the combined group, while Takeway.com CEO Jitse Groen will assume the role of CEO at the company, which will be headquartered and domiciled in Amsterdam.

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