Just Eat complete deal with Greggs for exclusive delivery rights

Just Eat (LON:JE) have updated the market on Wednesday about an exclusive partnership with Greggs (LON:GRG) for a delivery service.

The FTSE 100 listed firm told shareholders that they intention on having Greggs’ bakery food products on delivery by the end of 2020.

Greggs delivery has been trialled on Just Eat in London, Newcastle and Glasgow and plans to launch the service in Birmingham and Bristol are set to commence this week.

In the update, it was also noted that services in Manchester, Leeds, Sheffield and Nottingham will all be ready in Spring.

Just Eat’s UK Managing Director Andrew Kenny said: “We’re proud to be the only food delivery app that can bring you the likes of the Greggs vegan sausage roll wherever you are. This is an exciting exclusive partnership for Just Eat.

“Greggs has proved extremely popular with our customers, especially during breakfast, demonstrating that as a nation we love the convenience of getting our favourite food delivered – be it a Greggs bacon baguette and coffee on a Tuesday or your local Thai at the weekend.”

No surprise that Just Eat looked at Greggs

Greggs have seen a very successful trading year in 2019, and a notable update came in November.

For the six weeks to 9 November, total sales were up 12.4%. Additionally, company-managed shop like-for-like sales increased 8.3% over the six week period.

“Trading performance in the fourth quarter to date has continued to be very strong, despite the strengthening comparators seen in 2018,” Greggs said in a trading update on Monday.

“Sales growth continues to be driven by increased customer visits and has been stronger than we had expected given the improving comparative sales pattern that we saw in the fourth quarter last year,” Greggs continued.

Just Eat takeover deal

Just Eat themselves have been grabbing news headlines as two firms are competing in a proposed takeover deal.

Just Eat have been flirting with rumors of a potential takeover deal, however Prosus (JSE:PRX) and Takeaway.com (AMS:TKWY) have been locked in a vicious battle to make the acquisition permanent.

Just Eat updated the market by saying that they are reviewing the increased offer from Prosus and are advising shareholders to hold off from accepting the proposition.

Prosus, increased its offer for London-listed Just Eat to 740 pence per share, giving Just Eat a value of £5.1 billion.

The all-cash offer represents a 26% premium to Just Eat’s closing price on October 21, the day before Prosus’s first bid for the company.

However no formal deal has been completed and shareholders from all three parties are speculating over the future of Just Eat.

Certainly the battle for Just Eat will continue to heat up, however the deal with Greggs today seems to have captured a market which may have benefits for both firms.

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