Prosus's Strategic Acquisition of Just Eat Takeaway: A New Era in European Food Delivery

In a significant move poised to reshape the European food delivery landscape, Prosus, the Dutch technology investment giant, has announced its intention to acquire Just Eat Takeaway.com (JET) for €4.1 billion. This all-cash offer of €20.30 per share represents a 22% premium over JET's recent three-month high, yet remains below its 2016 IPO price of €23.50. The transaction is expected to conclude by the end of 2025, pending shareholder approval, and will result in JET's delisting from public markets.

A Tumultuous Journey for Just Eat Takeaway

JET's trajectory has been marked by rapid expansion and subsequent challenges. The company experienced a surge during the COVID-19 pandemic, with its valuation peaking at over €100 per share in 2020. However, post-pandemic market corrections and strategic missteps, notably the ill-fated $7.3 billion acquisition of U.S.-based Grubhub in 2021—later sold for a mere $650 million—have significantly eroded its market value. In 2024, JET reported a net loss of €1.65 billion, including a €1.16 billion impairment related to Grubhub.

Prosus's Strategic Expansion

For Prosus, this acquisition aligns with its strategy to consolidate and expand its footprint in the global food delivery sector. Already holding significant stakes in platforms such as Delivery Hero, Meituan, and Swiggy, Prosus aims to leverage its expertise to bolster JET's operations. CEO Fabricio Bloisi emphasized the opportunity to create a "European tech champion," focusing on integrating advanced technologies, including artificial intelligence, to enhance operational efficiency and customer experience.

Market Reactions and Future Outlook

Following the announcement, JET's shares surged by approximately 52%, while Prosus experienced a 7% decline, reflecting investor sentiments and the perceived risks associated with the acquisition. JET's CEO, Jitse Groen, expressed optimism, stating that the deal offers "immediate, certain, and attractive value for investors" and positions the company for accelerated growth in sectors such as food, groceries, and fintech.

MY VIEW

This acquisition underscores the ongoing consolidation within the food delivery industry, driven by the need for scale, technological innovation, and diversified service offerings to achieve sustainable profitability. Prosus's extensive portfolio and financial resources could provide the necessary support for JET to navigate the highly competitive European market. However, the success of this venture will hinge on effective integration, strategic investments, and the ability to adapt to evolving consumer behaviors and regulatory landscapes.

In conclusion, Prosus's acquisition of Just Eat Takeaway represents a bold strategic maneuver aimed at strengthening its position in the European food delivery market. While challenges persist, the combined expertise and resources of both entities offer a promising avenue for innovation and growth in the sector.