European Just Eat Takeaway to buy Grubhub for $ 7.3 billion

European Just Eat Takeaway will buy Grubhub for $ 7.3 billion. IT Market


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Sergey Dragun | 06/11/2020

European Just Eat Takeaway to buy Grubhub for $ 7.3 billion

The deal will create a company built around the world’s four largest profit centers in the field of food delivery from restaurants. These are USA, UK, Netherlands and Germany. Grubhub agreement will help
Avoid antitrust issues that interfered with her negotiations with Uber Eats.

In May, Uber turned to Grubhub in Chicago to conclude a business combination, but it broke up this week. Uber said in a statement that the food delivery industry needs
consolidation, but he is not interested in achieving the goal at all costs. Media reports of Uber’s intentions prompted Just Eat Takeaway to make an offer. At the moment, the amount is
7.3 billion dollars. Both companies have similar models of food delivery from restaurants. The deal will provide Grubhub financial stability and flexibility. Grubhub shares rose nearly 6% in the secondary market,
and Just Eat Takeaway shares closed at 13% after the parties said they were negotiating. Experts say that consolidation is long overdue in the United States. Demand is growing because many people
stay at home due to coronavirus. Just Eat Takeaway said it plans to close the deal in the first quarter of 2021, pending approval by shareholders and regulatory authorities. United company will
have headquarters in Amsterdam. Just Eat Takeaway’s revenue in 2019 was 1.5 billion euros (1.7 billion US dollars), while at Grubhub it reached 1.2 billion euros. Companies
reported that order growth in their main markets grew by 41% in April and May, as the outbreak of coronavirus led to a sharp increase in the use of online services. Takeaway was founded in 2000, in
In 2018, she bought the German competitor Delivery Hero.

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