The European food delivery industry has become a battleground with many rivals competing against each other by implementing a similar pricing strategy and mimicking business models. In this scenario, the boards of leading European food delivery giants Just Eat and Takeaway.com have reached an agreement to combine their businesses.
As a result of the partnership, the new company will become the market leader in Germany, Britain, Canada, and the Netherlands when the deal completes in Q4, 2019. As per the agreed terms, here we list the changes that will be implemented.
What does it means for shareholders?
As per the terms of the merger, Just Eat shareholders will receive 0.09744 new Takeaway.com shares in exchange for each Just Eat share that they own. The Just Eat shareholders will own nearly 52.15% while Takeaway.com shareholders will own the remaining 47.85% of shares of the combined group.
Biggest food delivery service!
The merger has led to a new company, Just Eat Takeaway.com NV headquartered, which will have its headquarters in Amsterdam. Still, the companies plan to maintain the London headquarters of Just Eat. The combined group will be one of the biggest food delivery service providers in the world with 355 million orders worth €7.3 billion in 2018.
Span across geographies
The two companies do not have any significant geographical overlap. While Just Eat is focused on western Europe and the UK and is expanding into Latin America, Canada, and Australia, Takeaway.com is leading in eastern Europe and Germany.
New combined management board
The combined group will have a two-tier board structure – a management board and a supervisory board. Both these will have a combination of members from the boards of Just Eat and Takeaway.com.
The board of the combined group will include current Takeaway.com CEO Jitse Groen serving the role of CEO and Paul Harrison, the current CFO of Just Eat serving the same role for the combined entity. Brent Wissink, the current CFO of Takeaway.com will become the co-COO of the merged entity and Jörg Gerbig, the current COO of Takeaway.com will take the role of co-COO of the entity.
New supervisory board
When it comes to the supervisory board, Just Eat’s chairman Mike Evans will be the chairman of the merged entity. Also, Adriaan Nühn, the chairman of Takeaway.com supervisory board, will take up the role of vice-chairman of the combined group’s supervisory board.
Besides them, the supervisory board will comprise three independent non-executive members picked by Just Eat and two non-executive members picked by Takeaway.com.
Seeks approval for the FTSE listing
Takeaway.com intends to seek approval for the listing and admission to trading of the enlarged share capital of the Combined Group, comprising the Existing Takeaway.com Shares and the New Takeaway.com Shares, on the Premium Segment of the London Stock Exchange’s Main Market for listed securities, the listing and admission to trading of the New Takeaway.com Shares on Euronext Amsterdam and inclusion of the Combined Group in the FTSE 100 Index and FTSE All-Share Index.
Based on initial discussions with FTSE, Takeaway.com and Just Eat anticipate that the Combined Group would be eligible for inclusion in the FTSE 100 Index and the FTSE All- Share Index from completion of the Combination.
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