Just Eat Takeaway.com Agrees to Prosus Takeover: A New Era for Food Delivery in Europe
Just Eat Takeaway.com, one of Europe’s largest meal delivery companies, has announced that it will be taken over by Prosus, a Dutch-based technology investor. Prosus, which already owns a significant stake in Delivery Hero, a global rival, has offered an all-cash deal worth €4.1 billion (£3.4 billion) to acquire Just Eat. The move is seen as a strategic step to create a "European champion" in the food delivery sector. The offer, which values Just Eat at €20.3 per share on the Amsterdam stock exchange, represents a 22% premium over the company’s highest stock value in the past three months. This acquisition has been unanimously approved by Just Eat’s management and board, signaling a new chapter for the company.
Just Eat’s Strong Financial Performance
The announcement of the takeover coincided with Just Eat’s annual results, which highlighted a 35% increase in pre-tax profits for 2024, reaching €460 million (£382 million). This impressive growth was primarily driven by improved performance in the company’s key markets, particularly in the UK and Ireland. Lower order fulfillment costs and more efficient marketing strategies contributed significantly to this success. The company has managed to maintain its profitability while expanding its operations, making it an attractive target for investors like Prosus. With a strong financial foundation, Just Eat is well-positioned for future growth under new ownership.
Prosus’s Vision for Just Eat Takeaway.com
Prosus has emphasized its intention to build on Just Eat’s success in key European markets such as the UK, Germany, and the Netherlands. The company highlighted Just Eat’s profitable and cash-generative operations, which offer considerable growth potential. Prosus, with its proven track record of scaling e-commerce platforms, believes it can unlock additional value by accelerating growth at Just Eat. The company plans to focus on enhancing technology, product features, demand generation, and service quality, drawing inspiration from its successful strategy at iFood in Brazil. This approach has transformed iFood into a leading food delivery platform, and Prosus aims to replicate this success with Just Eat.
Leadership and Operations Post-Acquisition
Under the terms of the acquisition, Just Eat’s current leadership will remain in place, and the company will continue to be based in Amsterdam. This continuity is expected to ensure a smooth transition and maintain the strong brand presence that Just Eat has built in European markets. Prosus’s extensive experience in food delivery and its global portfolio make it an ideal partner to drive Just Eat’s future growth. The combination of Just Eat’s local expertise and Prosus’s technical and investment capabilities is expected to create significant value for customers, drivers, restaurant partners, and shareholders alike.
Prosus’s Track Record in Food Delivery
Prosus’s chief executive, Fabricio Bloisi, highlighted the company’s extensive food delivery portfolio outside of Europe and its proven track record of profitable growth. By investing in customer and driver experiences, restaurant partnerships, and innovative logistics powered by AI, Prosus has established itself as a leader in the food delivery sector. The company’s success in scaling platforms like iFood in Brazil demonstrates its ability to drive growth in competitive markets. With this expertise, Prosus is well-positioned to enhance Just Eat’s operations and expand its market share in Europe.
Market Reaction to the Deal
While the acquisition has been welcomed by Just Eat’s management and board, Prosus’s stock price reacted negatively to the news, trading down by more than 6% on Amsterdam’s Euronext index. This reaction could be attributed to investor concerns about the deal’s valuation and the potential risks associated with integrating Just Eat into Prosus’s portfolio. However, the long-term outlook for the combined entity appears promising, with the potential to create a dominant player in the European food delivery market. As the deal progresses, all eyes will be on how Prosus leverages its resources to unlock Just Eat’s full potential and deliver value to stakeholders.
