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.

Practise trading Just Eat and other stocks with an IG demo account.

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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.