Grubhub ties up with Just Eat

After rejecting a takeover approach by Uber, Grubhub has agreed to merge with Just Eat in an all-share deal.

Edmund Heaphey had the news for Yahoo Finance:

Just Eat Takeaway.com (JET.L) confirmed on Wednesday that it is in advanced discussions with US food delivery giant Grubhub (GRUB) about an all-share merger.

The discussions come amid increasing uncertainty about a possible merger between Uber (UBER) and Grubhub, after US lawmakers pushed antitrust officials to investigate the potential deal.

The merger between Just Eat Takeaway.com and Grubhub would create a transatlantic food delivery powerhouse, and would represent a further coup for Jitse Groen, the chief executive of Just Eat Takeaway.com.

Leticia Miranda from NBC News reported:

Grubhub, based in Chicago, agreed to merge with Just Eat Takeaway in a deal that gives Grubhub shares an implied value of $75.15, which amounts to an implied total equity value of $7.3 billion on a fully diluted basis.

“When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S.,” said Matt Maloney, CEO and founder of Grubhub, in a statement. “Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world.”

Ingrid Lunden and Kristen Korosec from TechCrunch wrote:

Matt Maloney, CEO and founder of Grubhub, will join the Just Eat Takeaway.com management board and will lead the combined group’s businesses across North America. Jitse Groen, CEO and founder of Just Eat Takeaway.com, will lead the combined business globally.

“Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents. Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China,” Groen said in a statement. “We look forward to welcoming Matt and his team to our company and working with them in the future.”