Takeaway acquires Just Eat for $7.8 billion

The deal is under review by the UK's Competition and Markets Authority

Dutch online food ordering firm Takeaway said last week that it has acquired British peer Just Eat for $7.8 billion.

Reuters says that the shares of the merged company will start trading on the London Stock Exchange from 3rd February, although both firms still need an approval from the UK's Competition and Markets Authority (CMA) before merging their operations.

The CMA launched an 11th-hour review of the proposed takeover last month to examine whether it would result in 'a substantial lessening of competition' in the British market. The authority also wants to investigate whether the Dutch firm might have re-entered the British food delivery market if its deal with Just Eat had not succeeded.

Takeaway, which quit the British market in 2016, argues that that is not the case. The firm expects the CMA to complete its probe by 5^th March. Until then, both companies will be required to continue operating under separate branding and management.

Just Eat is confident that its deal with Takeaway would not harm competition in the British market. The firm also stated that it would cooperate with the CMA in its investigation.

Earlier in January, Takeaway announced that its shareholders had approved the proposed purchase of Just Eat, adding that about 46 per cent of Just Eat shareholders had also given assurance for tendering their shares.

Takeaway was competing with South African company Prosus to acquire Just Eat, but in December Just Eat's board rejected Prosus' cash bid after Just Eat increased its bid.

Takeaway's earlier bid included an all-share merger with Just Eat's shares valued at £7.31 each, but in its new bid, the firm increased the share value to £9.16.

It also offered to increase the stake of Just Eat shareholders in the new entity from 52 per cent to 57.5 per cent.

Just Eat is headquartered in London and serves as an intermediary between customers and independent take-out food outlets.

The firm offers services in 13 countries in Europe, Americas, Asia, and Oceania.