Will a monopoly be created in the food supply market?
World leader in online delivery can be created by Just Eat Takeaway acquiring Chicago-based Grubhub for $7.3bn in stock in a deal. Just Eat Takeaway beat out Uber and Germany’s Delivery Hero was also considering a bid.
Just Eat Takeaway beat out Uber, which had put Grubhub in play by approaching its US rival in early February. Uber approached Grubhub in early February with a takeover proposal. Uber lost the race partly over regulatory concerns, according to people briefed on the matter. Uber’s share price fell 4.8 per cent on Wednesday.
The marketplace business has traditionally offered higher margins, though Grubhub’s battle with Uber Eats sent it into the red last year.
Just Eat Takeaway shareholders will control about 70 per cent of the combined company, while the rest will be owned by Grubhub’s investors. Under the terms of the deal, Grubhub shareholders will receive Just Eat Takeaway shares worth $75.15 for each of their existing shares, a little over 60 per cent higher than where Grubhub was trading before reports about deal talks with Uber emerged in May.