US$7 bil acquisition to create online food-delivery behemoth

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Company will have a major presence in US, Britain, Germany and Netherlands. FMTNews OnlineFoodDelivery Britain US Business

NEW YORK: Anglo-Dutch meal delivery firm Just Eat Takeaway.com agreed to acquire US company Grubhub for US$7.3 billion to form the world’s largest online food delivery company outside of China, they announced Wednesday.

The combined company will have a major presence in four key markets – the US, Britain, Germany and the Netherlands – and position the enterprise for greater growth in the US, they said in a news release. “Just East Takeaway.com will prioritise sustainable growth over profits, as this has been a major driver of its strategy and success in Europe,” the press release said.

Under the Just Eat Takeaway.com deal, which must be approved by shareholders of both companies, investors in Grubhub will receive 0.6710 of Just Eat Takeaway shares for each Grubhub share.Shares of Grubhub surged 5.9% to US$62.50 in after-hours trading Wednesday.

 

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