In: Finance
Describe the type of merger and acquisition between Just Eat Takeaway and Grub Hub?
How is it progressing?
What is the purpose of the transaction?
Do you agree with their strategic direction?
Ans:
On last wednesday just Eat Takeaway confirmed that it is in advanced discussion with US Food delivery gaint Grub Hub about an All- Share merger.
The DIscussions come amid increasing uncertainity about a possible merger between uber and Grubhub, after US lawmakers pushed antitrust officials to investigate the potential deal.
The merger between just Eat Takeaway and Grubhub would create a transatlantic food delivery powerhouse, and would represent a further coup for jiste Groen, the chief executive of just takeaway.
Shares in just Eat Takeaway fall by more than 12% on that day following the confiramation of the discussions.Uber shares had earlier fallen following a CNBC report that suggested the company was likely to withdraw from merger talks with grubhub due to antitrust concerns.
Because Just Eat Takeaway does not currently operate in the US and Grubhub does not in Europe, the deal is unlikely to raise competition concerns.