LONDON/AMSTERDAM (Reuters) – Amsterdam, the netherlands Takeaway.com (TKWY.AND it has agreed to buy it Just to Eat with YOU.(L) in an 8.2 billion pound ($10.1 billion) deal to create the world’s largest online food delivery company outside of China are in a race to dominate the $ 100 billion market.
With a combined take-out meals, and Just Eat a would be rival to Uber is Eating (the UBER.And it would have a leading position in many of the world’s biggest food delivery markets, including the United Kingdom, Germany, the Netherlands, and Canada.
Scale is an important part of the food delivery apps for ‘scramble’ to provide consumers with the widest variety of choices. The vast majority of players, even though it is not Just Food, is still loss-making as they have to spend heavily on marketing, and mergers & acquisitions.
Just Eat, founded in Denmark in 2000, is primarily an online platform which is connected to the restaurants and the customers, although it has more recently begun to offer its own delivery service, as well as the Uber of Dining, and the Amazon-backed (AMZN.O) – Deliveroo.
The contract, with the take away service, a driver of sector consolidation, it is a victory for the U.S. activist investor’s Cat, Rocky, who owns shares in the companies and pushed to Eat normally in order to merge with a competitor.
“The proposed transaction is great news for Just Eat’s shareholders,” the Cat Rock is the Founder and Managing ner of Alex, the Captain, said in a statement. “We will support the work of the Board in evaluating and consummating a transaction that will maximize shareholder value over the long term, the next couple of weeks.”
On the basis of 2018, with a value of the order, it would give the combined company a scary catch up with the Uber Eats, with orders for a total value of $8.1 billion, compared to its US rival to $7.9 billion. Uber is Eating, refused to comment on the proposed deal, which is, in principle, agreed to the contrary.
Under British takeover rules, the Takeaway.com to the Aug. 24 to announce a firm intention to make an offer or announce that it does not make a selection. The deal would have to be approved by the companies ‘ boards of directors and the shareholders.
Investors in London-listed Just Eat, get 0.09744 Takeaway.com shares of for every share, which is equivalent to a value of 731 pence per Ordinary Food to share, a 15% premium to their closing price on Friday, the two companies said on Monday.
Shares in Just Eat, which is a pre-tax profit of 102 million pounds by 2018, which increased by 26% to 800 pence, with an indication of the expectation of a higher competing take-over bid, and while the Food was up 2.6 percent at 1339 GMT.
“It’s a fair price, that’s a big part of that Takeaway.com and you can share in the benefits to shareholders,” said Philip Russell, fund manager at BMO Global Asset Management, which owns the equity interest in both Just Eat and the take-away.
It’s added value even more, shareholders in the extract, Just Eat it. “At 730 pence, if you’re looking for a rating at the Brazil, or Canada, ( … ), you get the business in the united kingdom in a very, very low,” he said.
Even more, decided to buy the German business of Delivery Hero, to 930 million euros this year, said to be the leading food provider in continental Europe, Israel, and the war in Vietnam.
It is argued that it is online food order, it will be very profitable for one and only one player in each of these countries.
Investec analysts said there was limited geographic overlap between the two, with the exception of Switzerland).
“What this means is that the chance is about the use of technology and outsourcing of administrative expenses, in our view, the sharing of best practices,” Investec said. “It is not likely to be significant, but it is less attractive than if they are overlapping each other.”
Analysts expect the final deal to be the face of the anti-trust hurdles, while Britain’s competition regulator is considering a full investigation into Amazon’s plans for a $575-million in fundraising in a competitive Deliveroo, announced in May.
Just Eat, which was originally aimed at the self-employed (take-away restaurants that offered pick-up and delivery services for an additional fee to join the platform and receive a commission for every order placed.
Just to have something to Eat, since the upgrading of its technology, has launched its own delivery services, with the help of the experience acquired in the acquisition of Canada’s SkipTheDishes.com he struck deals with fast food chains such as Burger King, Subway and KFC.
However, the strategy caused a shift in earnings momentum will be strong, and to slow down as Chief Executive, Peter Plumb, in January, in the midst of shareholder pressure. Just Eat it, it is still on the search for a permanent replacement for him.
Analysts at Barclays bank said to merge with the Food and would Just Eat the shareholders, “one of the best operator in the space for the conduct of the business is a striking shift from the missed performance of the management in the past few years.
But in the photo, the Food was more varied, with exposure to a lot more story and a more competitive and performance perspective.
- The activist investor, the Cat, the Rock talks Just to Eat Takeaway.com the deal is ‘good news’
On the other hand, you Just have to Eat the shares are still very cheap, and the value of being a global player, it would only increase the period of time, she said, adding: “This is a great opportunity for you to build up in the bowl, and that should benefit both parties in the long run.”
Trip shareholders equity 52.2% of the combined group, which was a 360 million of orders, up to the value of eur 7.3 billion in 2018.
Mike Evans, a trip of the president, the chairman of the combined group, while Takeway.com the chief executive, Jitse Groen, the role of the chief executive officer of the company, which will be incorporated, with its head office based in Amsterdam, the netherlands.
Reporting by Paul Sandle in London, and Bart Meijer in Amsterdam; additional reporting by Georgina Prodhan and Simon Jessop; editing by Guy Faulconbridge and Alexander Smith