Matt Maloney, establisher and CEO of Grubhub.
Adam Jeffery | CNBC
Grubhub plans to merge with European food delivery company Just Eat Takeaway.com, the circles announced Wednesday.
The deal gives Grubhub shares an implied value of $75.15, implying a total equity value of $7.3 billion on a fully out basis. Shares of Grubhub spiked more than 7% during after hours trading.
The merger, which thinks fitting combine two of the top food deliver services in the U.S. and Europe, comes after Grubhub’s talks with Uber fell past amid concerns over antitrust scrutiny. Though both parties had agreed on a price ratio, the companies traced concerned about likely antitrust pressure and could not come to an agreement on how Uber would support Grubhub with the aid the regulatory process, CNBC’s David Faber reported earlier Wednesday. Uber shares were down degree after hours following the announcement.
Uber offered 1.925 shares for each Grubhub share, valuing Grubhub at a book weighted average price of about $70 per share and a Wednesday close value of $67.04, according to people au fait with the matter. Just Eat Takeaway offered 0.67 shares for each Grubhub share, an implied value of $75.15 for each Grubhub allocate based on June 9’s €98.60 Just Eat Takeaway closing price. Still, Just Eat Takeaway shares fell more than 10% on Wednesday’s press release, lowering the offer to about $65.17 per Grubhub share.
Just Eat offered a small premium to where Grubhub is currently work, a person familiar with the matter told CNBC prior to the deal’s announcement. As of market close Wednesday, Grubhub rations traded around $59 per share, giving it a $5.4 billion market cap.
“Like ridesharing, the food delivery earnestness will need consolidation in order to reach its full potential for consumers and restaurants,” an Uber spokesperson said in a announcement. “That doesn’t mean we are interested in doing any deal, at any price, with any player.”
Grubhub’s deal with Just now Eat is unlikely to garner as much regulatory attention as its possible combination with Uber. The proposed Uber-Grubhub deal determination have combined two of the three largest food delivery companies in the U.S.
The companies said they expect the deal to strict in the first quarter of 2021. Grubhub CEO Matt Maloney will join Just Eat’s management board and lead the conjoined business in North America. Two Grubhub directors will join Just Eat’s supervisory board, according to the release.
The British game authority just gave the green light in April for Britain’s Just Eat and Netherlands-based Takeaway to combine. At the time, the British Rivalry and Markets Authority said it was unlikely Takeaway would have been able to re-enter the British market in a signal way on its own without the merger.
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