Just Eat Takeaway CEO Defends $7.3 Billion Grubhub Deal

(Bloomberg) -- Just Eat Takeaway.com NV was questioned by analysts and investors on a call Thursday over the Dutch food-delivery company’s plan to acquire U.S.-based Grubhub Inc. for $7.3 billion, in a deal that will form one of the world’s largest online meal-delivery platforms.

Analysts said the deal complicates the investment case for the Dutch company so soon after its acquisition of Just Eat, but is a necessary move in broadening the company’s global reach, especially into an important market like the U.S.

Just Eat Takeaway’s shares fell 1.3% to 84.40 euros at 3:20 p.m. in Amsterdam, extending Wednesday’s 13% drop. Grubhub closed 2% higher in New York Wednesday.

Key Points:

• “We’ll make a success of this combination,” said Just Eat Takeaway Chief Executive Officer Jitse Groen on the call. The combined company will have a presence in 25 countries with 70 million active consumers, and room to grow, he said.
• Barry Norris, CEO of Grubhub shareholder Argonaut Capital Partners, said in an email that the investment management company sees Groen’s firm “as the best managed company in this fast-growing sector,” but added he isn’t ruling out a hostile counterbid for Grubhub either by Uber Technologies Inc. or a new suitor.
• “The Just Eat Takeaway deal is an upgrade to the rumored Uber offer,” said Michael Messara, co-Chief Investment Officer of Caledonia, which is an investor in both Grubhub and Just Eat Takeaway. Messara spoke to Bloomberg on Wednesday.
• Just Eat Takeaway’s offer for Grubhub sidelined a possible deal with Uber, which had been in acquisition talks with Grubhub for months but was derailed by disagreement over certain issues.

Read More:

• Here’s What Analysts Say About Just Eat Takeaway’s Grubhub Deal
• Just Eat Takeaway Gets $15 Billion of Pizza and Kebab: Alex Webb
• Just Eat Takeaway to Buy Grubhub for $7.3 Billion to Enter U.S.

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