Prosus, the investment arm of South African media giant Naspers, has announced its intention to acquire the Dutch food delivery service Just Eat Takeaway (JET) for approximately €4.1 billion. This move marks a significant shift in the competitive food delivery market, as Prosus aims to solidify its stake and influence.
The takeover bid entails offering €20.30 per share, representing a remarkable 63% premium compared to JET's last closing price on February 21, 2025. The bid has been enthusiastically supported by JET’s CEO and founder, Jitse Groen, who indicated this move is both advantageous for current shareholders and pivotal for the company’s future. "The bid is regarded as fantastic news for shareholders after enduring years of sluggish performance," remarked market commentator Durk Veenstra.
Just Eat Takeaway has seen its stock value plummet, with shares trading significantly lower since their peak of €110 during the food delivery boom of 2020. The company’s revenue has been impacted heavily by increasing operational costs and competition, leading to considerable losses over the last year, estimated at €1.65 billion. This loss figure is slightly improved from the previous year’s figure of €1.85 billion but still highlights the company's struggles.
The board at JET sees this acquisition as not only necessary for financial relief but also as strategically aligned with the changing dynamics of the food delivery market. Following the announcement, the stock surged, reflecting investor optimism. If the deal proceeds successfully, JET indicates it will continue to operate under its well-established brand from its Amsterdam headquarters.
Prosus already holds stakes in various food delivery businesses, such as Delivery Hero and Swiggy, and intends to utilize its expertise and technological resources to help JET regain its competitive edge. Observers note how this acquisition could bolster the overall food delivery market, which has become increasing competitive and financially strained.
For Prosus, this acquisition is not without its risks. Should the deal fall through, it faces a penalty of €41 million payable to JET—a calculated risk as it aims to reposition JET for potential growth. Experts have mixed feelings about the acquisition’s long-term viability, especially considering the pressures of growing competition and past performance. Nonetheless, there is optimism among investors, as significant detached cash proposals are rare within the industry.
The acquisition bid reflects broader trends and challenges within the tech and food delivery sectors, marking prospective shifts for potential investors. There remains considerable anticipation surrounding regulatory approval processes, as both companies navigate the stockholder expectations and market scrutiny. This acquisition could pave the way for new business models and streamlined operations within Just Eat Takeaway, potentially revitalizing its brand and market presence.
Veenstra notes, "Whether Prosus can reverse JET’s fortunes will depend largely on market adaptability and whether they can translate operational insights effectively. Only time will tell if this bid opens the floodgates for much-needed innovation within the industry."