To kill two birds with one stone is precisely how the merger between the rivals, Just Eats and Takeway.com, could be described. The two teamed to gain greater market share and put up a strong competition against the giants like Uber Eats, GrubHub and Amazon’s Deliveroo in Europe’s food delivery market.
The two confirmed their merger talks on Saturday by saying that are “in discussions regarding a possible” tie-up agreement.
takeaway.com released a statement which said, “Any transaction may be structured as an offer for Just Eat by takeaway.com but there can be no certainty that any offer will be made, nor as to the terms of any such offer should one be made.”
If the two combine their resources and forces they would become one of the world’s leading online food delivery company.
The merger value is speculated to around £9 billion, or $11 billion. But neither of the two confirmed the value for a potential deal.
The Dutch company has to take a decision by August 24, notifying whether it holds “a firm intention” to tie-up with its UK rival. The collaboration would also require the approval of investors to get the deal through.
The news of the merger, which is said to be in its preliminary stage, lifted the share prices of Just Eat over a fifth. The shares of the UK food delivery company went up 22.7% at 780p from 731p.
If the multibillion-pound deal comes through, Just Eat shareholders would own around 52.2% of the combined new business, while takeaway.com’s would own 47.8%. Though the group’s headquarter would be located in Amsterdam, a “significant part of its operations” would be carried out from the UK. The group would also be listed on the London Stock Exchange.
With regard to merger of top jobs, it is said that Jitse Groen, CEO of takeaway.com, would become CEO of the combined company, Paul Harrison, CFO of Just Eat, would take the post of the CFO, Brent Wissink, CFO of takeaway.com, and Jörg Gerbig, COO of takeaway.com, would serve as co-COOs of the new collaboration, and Mike Evans, chairman of Just Eat, would take on the role of the chairman of the Supervisory Board of the combined group.