Just Eat and Takeaway.com merge
Source: Just Eat

Takeaway.com and Just Eat have agreed on a deal to combine their businesses. Although these talks have been going for some time, both the companies announced a week ago that their talks have reached an advanced stage. Some experts think that Takeaway.com has taken over Just Eat.

Today, both the companies held a press conference in which they said that they had agreed on an “all-share combination.” The boards of both companies have also recommended the shareholders to vote in favor of this union. However, the meetings of the shareholders will be held on 20 December. The pair wants the merger to complete in Q4.

“The fusion of both companies would form one of the biggest food delivery companies in the world. The best minds from both the companies will come together, which will give them vision, leading capabilities, and a diversified geographical existence,” they wrote in today’s note. They also added that the merger of Takeaway.com and Just Eat would result in a stronger platform and a bigger potential to deliver benefits to shareholders, employees, and consumers.

The CEO of Takeaway.com, Jitse Groen, said in a statement, “Our union will make us a formidable company having millions of consumers across the world. We will also become a leader in tech development in the sector. Our main advantage will also be leading in relationship with staff, consumers, restaurant partners, and delivery drivers. It is a dream combination created by a dream team. I am really lucky to be the leader of this union.”

Just Eat CEO, Mike Evans also wasn’t shy to share his views on this momentous occasion. He said, “Our board believes that it’s a compelling offer for Just Eat that will make us a global leader. Both of our businesses have a shared philosophy. So, together we will create one of the best online food delivery services on the planet. We also have a big commitment to the UK and the employees of Just Eat. Therefore, we believe that our combination would benefit our consumers and our restaurant partners. Just Eat and Tkeaway.com are going to be global leaders. Therefore, I am looking forward to working with Jitse and increase our business, together.”

Under the current deal, the Just Eat shareholders will receive 0.09744 Takeaway.com against one Just Eat share. Therefore, there will be a value of 731 pence on each Just Eat share. This is based on Takeaway’s share price of $100.9, representing a premium of 15% to Just Eat’s closing share on 26 July 2019

After the completion, Takeaway.com shareholders will own 47.85% and Just Eat shareholders will own around 52.15% of the combined group. The name of the combined group will be Just Eat Takeaway.com N.V., with headquarters Netherlands. However, their current intention is to maintain some functions of the Just Eat headquarters in London and a significant part of operations in the U.K., which also includes the current operations in Bristol, London, and Borehamwood.”

“We haven’t done a full assessment of Combined Group’s other locations. Therefore, we don’t have any specific plans relating to these locations,” the board adds.

There will be a two-tier board structure for the combined group. The combined group will also have a supervisory board and a management board that will contain a mix of the members of Just Eat board and Takeaway.com board. The current CEO of Takeaway.com, Groen will be the CEO of the combined group. Paul Harrison, the CFO of Just Eat, will become the CFO of the union.

Regarding the supervisory board, Just Eat chairman, Evans will be the chairman of the combined group. Adrian Nühn will be the vice-chairman. The board will also contain three independent non-executive members.

The shareholders and board members of both groups are quite hopeful that their merger will make them reach new heights. They might take over GrubHub. However, only time will tell whether they succeed in this venture.