AMSTERDAM - The Amsterdam-listed tech investment company, Prosus, has officially launched a €4.1 billion takeover bid for Just Eat Takeaway, with the company's board supporting the offer unanimously. Prosus is proposing €20.30 for each share of Just Eat Takeaway, representing a whopping 63% premium over Friday's closing price. This anticipated transition aims to capitalize on the strengths of both entities, aligning Prosus’s technical and investment capabilities with Just Eat Takeaway’s established brand presence across key European markets.
"We believe combining Prosus’ strong technical and investment capabilities with Just Eat Takeaway.com’s leading brand position...will create significant value for our customers, drivers, partners, and shareholders," stated Prosus chairman Fabricio Bloisi. His remarks underline the synergies expected from the merger. Just Eat Takeaway chief executive Jitse Groen mirrored this sentiment, emphasizing the acquisition as not just strategic but necessary for growth.
Groen noted, "Prosus fully supports our strategic plans, and its extensive resources will help to accelerate our investments and growth across food, groceries, fintech, and other adjacencies." This partnership marks Prosus's first major move following Just Eat Takeaway's sale of its US arm, Grubhub, to the Wonder Group for approximately $650 million—a pivot aimed at refocusing the company's operations after years of struggles and declining valuations.
The food delivery service saw its fortunes wane after acquiring Grubhub for $7.3 billion during the height of the pandemic. The rapid shift back to normalized living patterns led to intense competition from rivals like UberEats and DoorDash, severely influencing Grubhub’s performance. Just Eat Takeaway, which posted flat turnover of €3.6 billion and gross profits of €460 million for 2024, reported over €1.6 billion net profit due to significant write-offs related to Grubhub's sale.
Just Eat Takeaway's history has intertwined with Prosus’s aspirations since their infamous takeover battle for British delivery firm Just Eat back in 2019. Prosus’s initial bid of £5.1 billion was characterized by attempts to disrupt the merger previously succeeded by Just Eat with Takeaway.com, which officially combined forces just as the world descended the pandemic's lockdown rabbit hole.
Post-acquisition, Just Eat Takeaway is expected to retain its company name and headquarters based in Amsterdam. This merger fosters optimism as Bloisi commented on the overarching vision, stating, "This gives the opportunity to create a European tech champion.” Prosus aims to replicate its successes from previous investments, such as Brazilian company iFood, by employing artificial intelligence to revolutionize operations at Just Eat Takeaway.
Prosus holds substantial investments across the food delivery industry, owning 28% of Delivery Hero, as well as stakeholdings in other global food delivery platforms. The company’s strategic portfolio is expected to facilitate the growth of Just Eat Takeaway, which holds considerable potential across markets such as the UK, Germany, and the Netherlands.
The market responded sharply to the announcement, with shares of Just Eat Takeaway rising 55%, aligning closely with the takeover premium. Meanwhile, Prosus’s shares dipped around 6%, reflecting the mixed investor sentiment during such acquisitions. Stocks of related competitors also experienced movements, with Glovo owner Delivery Hero rising up to 9% on the news.
Analysts have speculated whether this acquisition is merely the first step toward greater consolidation within the European food delivery sector, with conversations surfacing about possible mergers with other entities like Delivery Hero. Market dynamics appear ripe for such moves, as both companies share common interests and existing stakes.
Jitse Groen is optimistic about the transformation—stressing Just Eat Takeaway has matured to be "a faster growing, more profitable and predominantly European-based business.” The prospective collaboration promises to usher in new investment opportunities to bolster Not Just Eat Takeaway’s core offerings but also expand its reach within the grocery and fintech sectors.
For now, all eyes are on how this acquisition reshapes the European delivery market and the innovations possibly spurred by integrating Prosus’s advanced technological framework.
The forthcoming months will be telling as Prosus implements its strategies to generate growth for both Just Eat Takeaway and its associated brands. The merger raises expectations among stakeholders for substantial growth and enhanced operational efficiency, mirroring the resilience and adaptive strategies of its global counterparts.