(Bloomberg) -- Takeaway.com NV has bid 5 billion pounds ($6.2 billion) for rival Just Eat Plc, a deal that would intensify a fight against rivals including Uber Technologies Inc.
The Dutch-based company is offering an all share deal at a 15% premium to Just Eat’s share price on July 26, according to a statement Monday. The new company also intends to remain headquartered in Amsterdam, with a premium listing on the London Stock Exchange.
The food delivery industry in Europe has become a battleground, with rivals competing on prices and copying each other’s business models. The all-share deal that’s being considered from Takeaway is another sign the Dutch-based company is intent on taking on its better-known rivals.
A deal would mark the second time Takeaway.com has entered the U.K. market. The company first launched in the country in 2012, but sold the business four years later to Just Eat, after struggling with growth.
Takeaway.com has also been rapidly expanding following a surging share price. In December it agreed to buy rival Delivery Hero SE’s German operations for about $1 billion, ending an expensive rivalry in a country where both were competing for market share at the cost of profitability.
It would also be something of a bailout for Just Eat, which has stuttered in the face of pressure from rivals and an activist shareholder. Once the dominant player in the food delivery market in the U.K., its shares have fallen in the face of growing competition from Uber Eats and Deliveroo amid escalating talk of consolidation in the sector
What Bloomberg Intelligence Says
A private-funding surge that has driven the valuation of online restaurant meal-delivery companies toward $100 billion will help startups more forcefully challenge incumbents, which have seen valuations fade amid intense competition and customer-acquisition costs.Diana Gomes, consumer goods analyst
The combined company would be one of the biggest in the sector. Their combined market capitalization was about $11 billion before news of the talks broke. While both have a similar valuation, Just Eat shares have fallen 25% over the past 12 months while Takeaway.com’s shares have risen 46%.
Just Eat shareholders would own approximately 52.2%. and Takeaway.com shareholders would own approximately 47.8%.
Takeaway’s chief executive Jitse Groen -- who has about a $1.4 billion fortune, according to the Bloomberg Billionaires Index -- has been penciled in as the CEO of the combined company, while Mike Evans, currently the chairman of Just Eat, will assume the same role for the combined group, according to the statement.
Goldman Sachs, Oakley Advisory and UBS advised Just Eat, while Bank of America Merrill Lynch and Lazard advised Takeaway.com.
--With assistance from Wout Vergauwen.
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