Dutch third party delivery service Takeaway.com announced this morning it has reached a preliminary agreement to merge with UK-based Just Eat, which operates a similar food delivery service, in a £9 billion (~$11 billion USD) all-share deal that would create a new company, Just Eat Takeaway.com.
Murmurings of the deal have been around for a little while now. Just Eat faced investor backlash earlier this year and was urged by Cat Rock Capital Management LP, who owns a 2 percent share in the company, to merge with Takeaway.com in the wake of slowed sales. And last week, Just Eat told Bloomberg it was in talks with Takeaway.com.
Just Eat and Netherlands-based Takeaway.com operate in multiple countries throughout the world, with some but not much overlap between the geographical regions they serve. Just Eat operates in the UK, Canada, Brazil, Mexico, Australia, and several countries in Europe; Takeaway.com has a presence in Europe, including multiple Eastern European countries.
The deal would create a massive online food delivery service that would have the size and scale to realistically take on competition from the other major third-party delivery services.
According to a press release, under the terms of the deal, Just Eat would own 52.2 percent of the new company, and Takeaway.com would own almost 48 percent. The new business would be headquartered in Amsterdam and “will maintain a significant part of its operations in the United Kingdom.”
The press release also notes that Jitse Groen, who is currently CEO of Takeaway.com, will become CEO of the new business, while Paul Harrison, CFO of Just Eat, will assume the same role at the new business. Takeaway.com’s current CFO, Brent Wissink, and its current COO, Jörg Gerbig, will become co-COOs.
Takeaway.com has until August 24 to confirm its plans, which are subject to approval from shareholders at both companies. If and when it goes through, it would mean massive competition for other third-party delivery services, most notably Deliveroo, who recently got an investment from Amazon and Uber Eats, which also operates in Europe.