Published: Sun, January 12, 2020
Markets | By Otis Pena

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

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

Takeaway initially agreed the combination with the United Kingdom delivery company at the beginning of July. All were rejected as inadequate by Just Eat managers.

Just Eat PLC (LON:JE.) is to merge with Dutch rival Takeway.com after more than 80% of the app group's shareholders backed the £6.3bn deal. "While we have significant financial capacity we believe that our final offer of 800 pence per share was appropriate in light of the investment required".

Prosus Chief Executive Bob van Dijk said: "As stated in our original offer and subsequently, we consider Just Eat an attractive business though one which will require significant investment".

Takeaway.com's theory for the acquisition was that it creating a combined firm would help it become the dominant food delivery platform outside of the U.S., and allow it to better compete in the low-margin business.

Prosus boss said today: "We have an outstanding track record of executing M&A at the right price for our shareholders and of generating strong returns".

"Our core operating segments are growing fast with significant runway ahead of them".

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Confirmation of the deal is a blow to rival Prosus, the Amsterdam-listed offshoot of the South African tech group Naspers, which tried to break up the merger agreement with a rival offer.

"Just Eat is not an acquisition we wanted to make at any cost", argues Bob van Dijk, CEO of Prosus, after the tech giant walked away from the bidding war that started a year ago against rival Takeaway.

More than 80 per cent of Just Eat's shareholders have accepted the bid from its Dutch peer, making it a done deal.

But after a rejection from Just Eat, Prosus publicly raised its bid twice before Takeaway announced its final offer in December, valued at about 916 pence per share at the time. London-based Just Eat reported an 8.8m pound net loss in the first half of the year.

But with the backing of the Just Eat board, Takeaway always looked to have the upper hand.

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