According to a CNBC report, Prosus’ $4.3 billion bid to acquire Just Eat Takeaway.com has sparked a seismic shift in the European food delivery landscape, sending Just Eat’s stock soaring by 54% in early trading.
The all-cash offer values Just Eat at €20.30 per share—representing a hefty 63% premium on its last closing price—underscoring the Dutch technology investor’s aggressive push to consolidate power in the industry.
While Just Eat’s shareholders benefit from the surge, Prosus shares tumbled 8.3% following the announcement, reflecting investor concerns over the high acquisition price and long-term profitability.
Meanwhile, Delivery Hero—another major player in the food delivery sector, in which Prosus holds a 28% stake—climbed 5.4%, as markets speculated on the broader implications of the deal.
The acquisition attempt follows a tumultuous period for Just Eat Takeaway, which has struggled with slowing growth, changing consumer behaviour post-pandemic, and mounting competition from rivals like Uber Eats and Deliveroo.
By absorbing Just Eat, Prosus seeks to strengthen its footprint in the European market, but the deal also raises questions about regulatory scrutiny and industry consolidation.
Post-pandemic slowdown forces Just Eat into strategic retreat
Once a pandemic-era winner, Just Eat Takeaway has faced growing challenges as consumer spending patterns normalised.
During lockdowns, food delivery services thrived as customers relied on them for daily meals, but the reopening of restaurants and economic pressures, including rising inflation, have led to a steep decline in order volumes.
In response, Just Eat Takeaway exited multiple markets, including the United States, where it recently sold its struggling Grubhub unit for just $650 million—a fraction of the $7.3 billion it had paid to acquire the business in 2021.
The divestment reflected a broader strategy to focus on its core European operations, where competition remains fierce.
The company’s decision to delist from the London Stock Exchange last year was another sign of retreat, aimed at reducing costs and regulatory complexities.
With the Amsterdam exchange now its sole trading venue, Just Eat Takeaway is positioning itself for a leaner future—one that Prosus hopes to leverage with its latest bid.
Regulatory hurdles could complicate the deal
Despite the financial incentives for Just Eat shareholders, Prosus’ acquisition bid is likely to draw significant regulatory scrutiny.
European regulators have been increasingly cautious about consolidation in the digital economy, particularly in sectors where competition is already limited.
The European Commission previously investigated Just Eat Takeaway’s merger with Grubhub, and any new deal could face similar regulatory challenges.
With Prosus already holding a significant stake in Delivery Hero, authorities may assess whether the acquisition could stifle competition in key European markets.
Just Eat’s relationships with restaurants and delivery drivers—many of whom have protested against pay cuts and gig economy working conditions—could complicate the transition.
Labour regulations across Europe vary, and Prosus’ approach to managing Just Eat’s workforce will be a key point of contention.
Prosus doubles down on food delivery amid investor scepticism
Prosus’ bold move to acquire Just Eat Takeaway signals its commitment to the food delivery market, despite broader concerns over profitability in the sector.
The firm, majority-owned by South Africa’s Naspers, has been expanding its portfolio in online consumer services, including fintech and e-commerce.
Investors remain wary of the long-term sustainability of food delivery businesses, which operate on razor-thin margins.
Many platforms, including Just Eat and its rivals, have struggled to maintain profitability due to rising delivery costs, high commission fees, and customer retention challenges.
With Prosus shares sliding 8.3% in response to the deal, market sentiment suggests scepticism over whether the acquisition will deliver long-term value.
The success of the takeover will hinge on Prosus’ ability to streamline Just Eat’s operations, enhance efficiency, and fend off growing competition from other players.
As Just Eat’s stock surges on takeover optimism, the broader industry continues to navigate an uncertain future, where profitability remains elusive despite aggressive expansion efforts.
The Prosus bid may reshape the European food delivery sector, but whether it delivers sustainable growth or becomes another costly acquisition remains to be seen.
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