Just Eat Takeaway.com, one of Europe's largest food delivery firms, is set to be acquired by Dutch technology investor Prosus in a $4.3 billion all-cash deal, marking a significant shift in the industry as companies struggle with post-pandemic demand fluctuations. The offer values Just Eat shares at 20.3 euros each, representing a 63% premium compared to its closing price on Friday. The deal, unanimously approved by Just Eat's board, comes just two months after the company delisted from the London Stock Exchange, citing administrative burdens and low trading volumes.
Following the announcement, Just Eat shares surged 54.7%, reaching a new 52-week high before settling at a 53.9% increase. Meanwhile, Prosus shares dropped 6.8%, making it one of the worst performers on the Stoxx 600 index, while Delivery Hero, a Prosus-backed firm, saw its stock rise 3.2%. Prosus, which is majority owned by South African conglomerate Naspers, already holds a 28% stake in Delivery Hero, one of Just Eat's major competitors in the European food delivery market.
The acquisition comes six years after Prosus first attempted to acquire Just Eat's British business in a failed $6.4 billion hostile takeover bid in 2019. Just Eat instead merged with Dutch rival Takeaway.com in 2020, forming Just Eat Takeaway.com. During the pandemic, Just Eat experienced a massive boom in demand, with its valuation peaking at $19 billion as lockdowns drove a surge in food delivery orders. However, as restrictions eased, the company struggled to sustain its growth.
A sharp decline in consumer spending on food delivery services after the pandemic, coupled with failed expansion strategies, contributed to Just Eat's falling stock price. Notably, its 2021 acquisition of GrubHub for $7.3 billion turned into a major financial misstep. Last year, Just Eat sold GrubHub to New York-based Wonder for just $650 million-less than 10% of its original purchase price.
Prosus has positioned itself as a dominant force in global food delivery, holding stakes in major players such as Delivery Hero (28%), China's Meituan (4%), and India's Swiggy (25%). The firm has emphasized AI-driven operational improvements as a key component of its strategy. It previously applied these techniques to Brazil's iFood and now plans to implement similar technology at Just Eat.
"We are very excited for Just Eat Takeaway.com to join the Prosus group and the opportunity to create a European tech champion," Prosus CEO Fabricio Bloisi said in a statement. "We believe that combining Prosus' strong technical and investment capabilities with Just Eat Takeaway.com's leading brand position in key European markets will create significant value for our customers, drivers, partners, and shareholders."
Just Eat CEO Jitse Groen welcomed the acquisition, emphasizing its potential to accelerate the company's growth in key markets. "Prosus fully supports our strategic plans, and its extensive resources will help to further accelerate our investments and growth across food, groceries, fintech, and other adjacencies. We are looking forward to an exciting future together," Groen said.
