Business

Takeaway is also big in the US in one fell swoop

Although the offer has become less and less attractive in recent weeks, the shareholders of the American meal delivery company Grubhub agreed on Thursday to the merger proposal of industry partner Just Eat Takeaway.com (JET).

At a specially scheduled shareholders’ meeting, 99 percent of the company’s lenders voted in favor of the plans. The Anglo-Dutch Just Eat Takeaway thus gains access to a market where the company was not yet active: the United States.

Exchanging three shares of Grubhub for two shares in the merged company: that was simply the offer that shareholders of the American company received. When the plan was announced a year ago, it was still a very interesting proposal of 75 dollars (61.50 euros) per share. Just Eat Takeaway thus offered much more than Grubhub’s rate at that time.

Record price for Just Eat Takeaway

But that was at a time when the share of Just Eat Takeaway (2.4 billion euros turnover, 8,000 employees) was still heading towards the 100 euros mark, the highest level until then.

The company of CEO and founder Jitse Groen has lost a lot of market value in recent months. Last Friday, the share closed at 74.70 euros, making the Grubhub offer worth only about 60 dollars per share.

This drop in prices has several causes. Meal deliverers have benefited greatly from the corona pandemic in the past year. So with every positive news about the impending end of lockdowns, Just Eat Takeaway stock took a hit. But perhaps more importantly, the already fierce competition between the world’s largest meal delivery companies flared up even more this spring.

For example, Bloomberg news agency reported at the end of April that Doordash, the market leader in the US, is looking for acquisitions in Europe. The company is said to be mainly interested in the British and German markets, the main sources of income for Just Eat Takeaway. More or less simultaneously, Uber and Delivery Hero announced that they were expanding into Germany.

Also read the interview with Takeaway CEO Jitse Groen: ‘You can’t beat us anymore’

Price manipulation suggestion

Topman Groen was not impressed by that news. He suggested that the announcements served a different purpose. When an analyst on Twitter suggested it might be an attempt to lower Just Eat Takeaway’s share price to thwart the Grubhub merger, Green didn’t deny this.

Now that Grubhub’s shareholders have agreed to the merger plans, the parent company of Thuisbezorgd.nl is once again taking a step back from the competition. After the merger with Just Eat at the beginning of last year, Groen’s company was already the largest meal delivery company outside of China. With Grubhub, it will gain another 31 million customers and one and a half billion euros in turnover.

At the same time, Just Eat Takeaway is also entering risky territory with the switch to the US. In recent years, the company has been dominant in many markets – especially after merging with Just Eat. In the US, arguably the most aggressive fighting market for food delivery companies, it is now the underlying party again. Because where Grubhub was the largest a few years ago, the company has now been surpassed by Doordash and Uber.



Takeaway is also big in the US in one fell swoop
Source link Takeaway is also big in the US in one fell swoop

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