Just Eat expects to complete Takeaway.com merger before year-end

Online food marketplaces Just Eat and Takeaway.com announced merger plans in August – and today, the former said it expects the £9 billion deal to be completed by the end of the year.

The move, which if completed will create one of the largest food delivery companies in the world, relies on shareholder approval following a general meeting set to take place in December. The Just Eat shareholder circular related to the proposed deal with the Netherlands-based Takeaway.com will be published by the end of October.

The latest update on the proposed merger appeared in Just Eat’s third quarter results statement today (21 October), which showed the company had grown revenue by 25% year on year to £248 million.

Group orders were up by 16% to £62 million, with UK orders increasing by 8% to £33 million, aided by the newly enhanced delivery proposition which the business ramped up in 2018. The delivery arm is now present in all key geographies, but its reported success was offset by slower growth in Just Eat’s core marketplace business.

Canadian arm SkipTheDishes reported double-digit growth during the period, while the company talked up its performance in Italy, Switzerland and Spain. In Australia, the Just Eat business was said to be “on its recovery path”, but iFood – a joint venture with Movile covering the Brazilian and Mexican market – showed “exceptional growth”.

Full-year 2019 revenue is expected to be in the range of £1 billion to £1.1 billion and underlying EBITDA in the range of £185 million to £205 million excluding Brazil and Mexico.

Peter Duffy, interim CEO of Just Eat, remarked: “We are seeing strong growth in many of our markets, including Canada, Europe and pleasingly Australia, where we are starting to reap the benefits of our turnaround plan. 

“Our UK marketplace business is a strong and clear leader; however, we are seeing a structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains.”

He added: “The strong growth in our UK delivery business shows that we can successfully meet these needs.”

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