Just Eat share price: where now as £8 billion Takeaway.com merger announced?
The FTSE 100 online food delivery service saw its share price surge after news broke that its Dutch rival plans to acquire it in a multi-billion pound deal that will create a global market leader.
Just Eat saw its stock climb 30% on Monday morning after it announced its £8.2 billion merger with Dutch-rival Takeaway.com.
The news has led to investors growing excited about the prospect of a bidding war from other rivals looking to block the merger, with the deal, if completed, creating the world’s largest online food delivery platform.
Takeaway.com offers significant premium in Just Eat merger
The all share deal sees Takeaway.com offer Just Eat shareholders a 15% premium on its closing share price on Friday, implying a value of £7.31 a share.
Just Eat share traded as high as 825p a share following the deal announcement on Monday, with investors speculating about the prospect of a rival bid.
Under the terms of the deal, Just Eat shareholders would control a 52.2% shareholding in the merged entity, which will have its headquarters in the Netherlands but retain its premium listing on the London Stock Exchange.
The newly formed company will see Just Eat’s Mike Evans become chairman, while Takeaway.com’s CEO Jitse Groen would remain at the helm post-merger.
Just Eat-Takeaway.com tie-up to create market leader
If the planned tie-up goes ahead, subject to regulatory approval, it will create the world’s largest online food delivery platform, with it operating in 20 countries including the UK, Germany, the Netherlands and Canada.
‘The key feature of the combination of Just Eat and Takeaway.com is the limited geographic overlap between the companies,’ Edison Investment Research analyst Russell Pointon said in a note to investors. ‘Therefore, there will be limited consolidation of market shares in their combined markets.’
‘The companies would share best practice and know how etc. to help improve profitability to invest further behind their less profitable markets and fund the fights for market share in what is likely to be a very competitive market,’ he added.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 18,000* markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets