The boards of Just Eat Plc and NV have agreed on terms of an all-share £5 billion ($6 billion, Dh22.3 billion) deal that pits two food delivery incumbents against a clutch of well-backed startups.

Under the terms, Just Eat Shareholders will own approximately 52.15 per cent and Shareholders will own approximately 47.85 per cent of the share capital, the companies said in a statement on Monday.

The new combined group will be called Just Eat NV. The company expects to create recurring annual pre-tax cost benefits of approximately €20 million (Dh81.5 million) by the fourth anniversary of the completion of the deal, with around €10 million expected a year after the deal closes.

The food delivery industry in Europe has become a battleground, with rivals competing on prices and copying each other’s business models. Joining forces with will mark something of an escape for Just Eat, which has stuttered in the face of pressure from rivals and an activist shareholder. Once the dominant player in the food delivery market in the UK, its shares have fallen amid growing competition from Uber Eats and Deliveroo, and the company is without a permanent CEO after the departure of Peter Plumb in January.

The new company will remain headquartered in Amsterdam, but with a premium listing on the London Stock Exchange. There are no specific plans in to cut or Just Eat’s main UK offices, the statement added.