Just Eat Takeaway CEO Defends $7.3 Billion Grubhub Deal

Just Eat Takeaway CEO Defends $7.3 Billion Grubhub Deal

Business


In a telephonic conversation on Thursday, investors and analysts questioned Just Eat Takeaway.com NV about the company’s plan of acquiring Grubhub Inc, a US-based company, for a whopping $7.3n in an agreement that’ll develop one of the largest meal-delivery platforms online across the world.

The analysts said that the agreement complicates investment case for Just Eat Takeaway soon after the acquisition, but it’s a necessary move to widen the firm’s global reach, particularly in a vital market like the United States.

The shares of Just Eat Takeaway fell by 1.3 percent to 84.40 Euros in Amsterdam, extending the 13 percent drop on Wednesday. Meanwhile, Grubhub closed two percent higher in NYC on Wednesday.

On the phone call, Just Eat Takeaway CEO, Jitse Groen said that the company aims at making this combination a successful one. The combined firm will be operating in 25 nations, with 70mn active customers, Groen added.

In an email, Barry Norris, CEO, Grubhub shareholder Argonaut Capital Partners said that his firm considers Groen’s company as one of the best managed firms in the food-delivery sector. However, he added that he is not ruling out a counterbid for his company by Uber or any new suitor. The deal with Just Eat Takeaway is an upgrade or a better move to the apparent Uber bid, said co-Chief Investment Officer of Caledonia, Michael Messara.

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Hitesh Kumar

Before laying the foundation for X News Weekly, Hitesh was a digital marketer who worked in the field for more than 4 years. He worked his way towards understanding the trends and patterns of internet news reporting to create a platform that currently provides the latest news from different parts of the globe. Apart from being the founder of the website, Hitesh is also a creative writer who loves to write about the latest buzz in the business and entertainment world.

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