Sun, 28th Jul 2019
The food delivery company Just Eat is in talks with Takeaway.com with regard to a takeover.
A statement released by Just Eat notes that the two companies may merge in the event of an offer from Takeaway.com for Just Eat. Based on the company’s current value, the two firms would have a combined worth of £9 billion.
Earlier in the year, shareholders were putting pressure on Just Eat to merge with one of its rivals. The company emphasizes that at this time there is no certainty that an offer will be made.
Currently, around one fifth of adults in the UK have used Just Eat, while the Canadian arm of their services, called Skip the Dishes, has been growing rapidly thanks to the addition of a bilingual element to the service.
Interim Chief Executive Peter Duffy notes that four million new customers signed up for the delivery service last year. The growth has not been enough for investors, however, who are calling for a merger with another well-managed industry peer to help secure the company’s position as a market leader. The possibility of a merger with the Dutch company Takeaway.com is something that has been well-received by investors and fund managers.
In March, Just Eat reported that revenues were up by 43%, and that the company had reversed the losses seen in 2017. The company expects that it will continue to see rising profits over the coming months, but it is facing competition in the form of Uber and Deliveroo.