Just Eat and Takeaway.com have released a statement saying they have “reached an agreement in principle on the key terms” of a merger between the two businesses.
The statement said the deal represented a “highly compelling” opportunity to create a combined business that would become “one of the world’s largest online food delivery platforms with 360 million orders worth €7.3bn in 2018”.
It would also have a “strong founder led management team with 40 years of combined experience in the sector; strong leadership positions in many of the world’s largest food delivery markets, including the UK, Germany, the Netherlands and Canada; a platform built around two of the world’s largest profit pools in food delivery, the UK and the Netherlands; ability to deploy capital and resources to strengthen its competitive positions as the company determines appropriate; and operating leverage potential: greater ability to leverage investments, in particular in technology, marketing and restaurant delivery services across the combined business.”
The proposed terms of the deal would give Just Eat shares a value of 731p, a premium of 15%.
Should the deal complete, Just Eat chairman Mike Evans would become chairman of the combined business, with Adriaan Nühn, currently chairman of the Takeaway.com becoming vice-chairman.
Discussions remain ongoing but are at an “advanced stage”. Any deal would create a business worth around £9bn based on current market value. In 2018 Just East sales were up 43% to £779.5m, while pre-tax profits were £101.7m. It made a £76m loss in 2017.
Just Eat’s half yearly financial results are due on Wednesday, 31 July.
Precis
Just Eat move closer to merger with Takeaway.com
Just Eat and Takeaway.com have released a statement saying they have “reached an agreement in principle on the key terms” of a merger between the two businesses. It said the deal represented a “highly compelling” opportunity to create a combined business that would become “one of the world’s largest online food delivery platforms with 360 million orders worth €7.3bn in 2018”.