£8bn Just Eat merger sends shares soaring
JUST Eat shares soared by over a fifth yesterday as it lined up an £8.2billion merger with Dutch rival Takeaway.com, which could trigger a bidding war.
The firms have agreed in principle the key terms of an all-share deal that would create one of the world’s biggest online food delivery groups.
Just Eat investors would own about 52.2 per cent, with Takeaway.com shareholders holding 47.8 per cent.
The potential move values Just Eat’s shares at 731p, 15 per cent over their previous close. But the prospect of another firm like Delivery Hero or Uber gatecrashing the deal sent shares in the FTSE 100 group 144½p higher to 780p.
Just Eat and Takeaway.com said joining forces would create a food delivery platform with 360 million orders worth 7.3 billion euros (£6.6billion), as well as strong market positions in the UK, Germany, the Netherlands and Canada.
Talks over the other terms for a tie-up are at an advanced stage.
Just Eat has been under pressure from 2.5 per cent investor Cat Rock to merge with a rival after the departure of chief executive, Peter Plumb, in January.
Alex Captain, founder of Cat Rock, which also owns 4 per cent of Takeaway. com, said: “We would like to commend chairman Mike Evans and the board for taking clear and decisive action to realise Just Eat’s great potential, particularly in a structure that allows long-term shareholders to participate meaningfully in future value creation.”
Evans would remain as chairman of the combined group, with Takeaway.com chief executive, Jits e Groen, becoming CEO. Just Eat finance chief, Paul Harrison would be chief financial officer.
Neil Wilson, chief market analyst at Markets.com, said: “The deal gives Just Eat and its interim CEO the perfect exit, while also creating a company with the scale and strength to take on Deliveroo, Uber Eats and Amazon. It could open up a bidding war.”