Takeaway.com NV made a £5 billion pound (Dh22.57 billion, $6.2 billion) bid for rival Just Eat Plc, a deal that would intensify competition with the likes of Uber Technologies Inc. in the food-delivery space.
The Dutch company is offering an implied value of 731 pence for each Just Eat share, 15 per cent more than the target company’s stock price on July 26. The new company intends to remain based in Amsterdam, with a premium listing on the London Stock Exchange. Just Eat shares rose as much as 24 per cent to 790.8 pence in London.
The food delivery industry in Europe has become a battleground, with rivals competing on prices and copying each other’s business models. A deal would mark the second time Takeaway.com has entered the UK. The company first launched in the country in 2012, but sold the business four years later to Just Eat, after struggling with growth.
‘A combined entity can achieve over £10 billion market cap short term,’ said Marcus Diebel, analyst at JP Morgan in a research note. ‘A new leadership will bring what Just Eat lacks, execution on tech and an acceleration in disposals.