Just Eat Takeaway takes Grubhub from Uber and buys it for 6,426 million in shares only

The Dutch food delivery giant Just Eat Takeaway.com, has won Uber in the race to acquire the American company Grubhub and has announced a “definitive agreement” to acquire 100% of the company through a stock exchange worth $ 7.3 billion (6,426 million euros), which will give rise to the largest company in the sector outside of China.

In the agreement there will be no cash contribution but an exchange of shares. Grubhub shareholders will receive Depositary Securities (ADRs) equivalent to 0.6710 ordinary shares of Just Eat Takeaway.com, implying an implied value of $ 75.15 per share. This values ​​the company with a 30% premium compared to the price set at the close of Wednesday by the American company. In this way, the estimated amount of the transaction would reach 7.3 billion dollars.

Grubhub’s current shareholders will control 30% of the merged company

Once the operation is completed, which is expected to happen in the first quarter of 2021, pending the approval of the shareholders of both companies, as well as the authorization of the regulators, the current shareholders of Grubhub would control the 30% of the merged company.

The deal for the merger of Just Eat Takeaway.com and Grubhub sidesteps Uber Technologies, which had been in talks for months to acquire Grubhub.

The combination of Just Eat Takeaway.com and Grubhub would give rise to the largest online delivery platform for food delivery outside of China, With a presence in 25 countries and with more than 70 million customers, who in 2019 made around 593 million orders.

Board changes

Following the closing of the transaction, Matt Maloney, CEO and founder of Grubhub, will join the board of Just Eat Takeaway.com and will lead the company’s business in North America, while two other executives from the US will join the Dutch supervisory board.

The combined company will have its headquarters in Amsterdam and it will maintain its US business address in the city of Chicago, while it will have a strong presence in the United Kingdom.

«Matt and I are the last two veterans in the food delivery sector, having started our respective businesses at the beginning of the century, although on two different continents (…) I am excited to be able to create the food delivery company largest in the world outside of China, ”said Jitse Groen, CEO and founder of Just Eat Takeaway.com.

«I have known Jitse since 2007 and his story is very similar to mine. The combination of the companies that started it all will mean that two pioneering companies have become a clear world leader, “added Matt Maloney, CEO and founder of Grubhub.

The agreement for the acquisition of Grubhub comes just six months after the Dutch ‘delivery’ company managed to impose itself on the Prosus group in the fight they both had to win the British Just Eat.