Just Eat Takeaway.com has seen a significant increase in its stock price following an announcement from Prosus, a Dutch technology investment firm, of its intention to acquire the European food delivery giant for €4.1 billion (approximately $4.3 billion).
The all-cash offer, which values Just Eat’s shares at €20.30 each, represents a 63% premium over the company’s last closing price, sparking a surge of up to 54.7% in Just Eat’s share price.
The proposed acquisition follows several challenging years for Just Eat, particularly since the surge in demand during the COVID-19 pandemic. The pandemic had initially boosted food delivery services, but as consumer habits shifted post-pandemic, Just Eat’s growth began to slow.
Prosus, which is majority-owned by South Africa’s Naspers, already holds a 28% stake in Delivery Hero, one of Just Eat’s major competitors. The acquisition deal is expected to create a stronger presence for Prosus in the European food delivery sector. Fabricio Bloisi, CEO of Prosus and Naspers, expressed his excitement over the potential to create a “European tech champion” by combining Prosus’ resources with Just Eat’s strong brand position in key European markets.
Despite the recent surge in Just Eat’s stock, analysts remain cautious, as the company has faced several challenges in recent years, including poor investments and the underperformance of its acquisition of GrubHub, which was sold at a significant loss. Just Eat’s delisting from the London Stock Exchange in December 2022 and its continued struggles highlight the difficulties the company faces in adjusting to post-pandemic realities.
Prosus intends to leverage its previous success with iFood, the Brazilian food delivery service under its ownership, which used artificial intelligence to enhance operational efficiency. Jitse Groen, CEO of Just Eat Takeaway, stated that Prosus’ support would accelerate investments and growth across food, groceries, fintech, and other areas, helping the company to become more competitive against rivals like Uber Eats and Deliveroo.
The announcement led to a significant rally in Just Eat’s share price, reaching new 52-week highs, while shares of Prosus dropped by approximately 6.6%. The broader European stock market saw mixed reactions, with competitors like Delivery Hero gaining 4.8% on the news.
The deal marks a significant step for Prosus, which has amassed a wide range of investments in the global food delivery sector. The company also holds stakes in Swiggy (India), Meituan (China), and Delivery Hero. Bloisi aims to replicate the success of iFood in these markets by applying similar technologies to enhance Just Eat’s operational capabilities.
CNBC, Bloomberg, and the Guardian contributed to this report.
