Prosus Set to Acquire Just Eat Takeaway.com in $4.29 Billion Deal
In a significant move that is set to reshape the global food delivery landscape, technology investment giant Prosus has announced an agreement to acquire Just Eat Takeaway.com for 4.1 billion euros ($4.29 billion). The all-cash deal, which values the food delivery giant at 20.30 euros ($21.24) per share, was unveiled on Monday, sending shockwaves through the financial markets. Upon completion, the acquisition will propel Prosus into the position of the fourth-largest food delivery company worldwide, further solidifying its dominance in the global food-tech industry.
A Strategic Boost for Prosus’ Food Delivery Portfolio
Prosus, headquartered in Amsterdam and majority-owned by South Africa’s Naspers, has long been a major player in the food delivery sector, both in Europe and beyond. The company already owns Brazil-based iFood outright and holds a 28% stake in Germany’s Delivery Hero. The acquisition of Just Eat Takeaway.com is expected to significantly strengthen its foothold in Europe, a market that has been at the heart of Just Eat Takeaway.com’s recent strategic focus.
Just Eat Takeaway.com operates across 17 countries, but in recent years, the company has shifted its attention back to Europe after divesting its U.S. operations. Earlier this year, it sold Grubhub to New York-based Wonder Group for $650 million, a far cry from the $7.3 billion it had paid to acquire the platform back in 2021. The sale marked a strategic retreat from the highly competitive U.S. market, allowing Just Eat Takeaway.com to concentrate on its core European markets.
A New Chapter for Just Eat Takeaway.com
Despite its long history in the food delivery sector—having been founded in 2000—Just Eat Takeaway.com has faced increasing competition in recent years. The rise of platforms like Uber Eats and DoorDash in the U.S. and other global markets has intensified the battle for market share, making customer retention a significant challenge. The acquisition by Prosus, however, is seen as a turning point for the company.
In a statement, Just Eat Takeaway.com CEO Jitse Groen expressed optimism about the deal, calling it a move that “fully supports” the company’s strategic plans. “Just Eat Takeaway.com is now a faster-growing, more profitable, and predominantly European-based business,” Groen said, adding that he looks forward to an “exciting future together” with Prosus. The deal is expected to create a European tech champion, leveraging the combined strengths of both companies to drive innovation and growth in the region.
Market Reaction and Future Prospects
The announcement of the deal sent Just Eat Takeaway.com’s shares soaring by over 54% on Monday, reflecting investor confidence in the strategic benefits of the acquisition. However, Prosus’ stock took a hit, dropping 7.29% as investors weighed the implications of the large cash outlay required to complete the deal.
The transaction is subject to regulatory approval and other closing conditions, but it is expected to be finalized by the end of the year. Once completed, the acquisition will mark a new chapter for both Prosus and Just Eat Takeaway.com, positioning them as a formidable force in the global food delivery industry.
In conclusion, the acquisition of Just Eat Takeaway.com by Prosus is a strategic move that promises to reshape the food delivery landscape in Europe and beyond. With a combined focus on growth, profitability, and innovation, the two companies are well-positioned to navigate the competitive and evolving food-tech sector. While challenges lie ahead, the deal represents a significant step forward for both parties as they look to capitalize on the opportunities of the digital age.
