Just Eat acquires Grubhub in $7.3bn deal

just eat

Just Eat has announced plans to buy US-based app Grubhub in a $7.3bn (£5.8bn).

When the merge is completed, Just Eat will become the world’s biggest food delivery company outside China.

The announcement comes after the talks between Grubhub and Uber fell through due to antitrust concerns.

“Like ridesharing, the food delivery industry will need consolidation in order to reach its full potential for consumers and restaurants. That doesn’t mean we are interested in doing any deal, at any price, with any player,” said a spokesperson from Uber.

In after-hours trading, shares in Grubhub spiked 7%.

The deal will need approval from shareholders and is expected to be completed in the first quarter of 2021.

Matt Maloney, the CEO and founder of Grubhub, will join the Just Eat’s board and will lead the combined group’s businesses in the states.

“Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world. We could not be more excited,” said Maloney.

Just Eat’s chief executive, Jitse Groen, said: “Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents.”

“Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China. We look forward to welcoming Matt and his team to our company and working with them in the future,” he added.

When the deal is completed, Just Eat will have 70 million combined active customers globally.

Shares in Just Eat (LON: JET) are trading at 7,644.00 (0937GMT). Shares in Grubhub (NYSE: GRUB) are up 1.95% at 59.05 (0937GMT).

 

 

 

Previous articleSomero Enterprises to cut costs in light of Coronavirus
Next articleOcado raises £1 billion to fund accelerated expansion
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.