You’ve probably heard of Grubhub, but have you heard of Just Eat Takeaway.com? If you haven’t, it’s time to start paying attention.
Just Eat Takeaway.com of the Netherlands reached a deal to acquire Grubhub for $7.3 billion. The European food delivery company is paying $75.15 a share for Grubhub in an all-stock transaction.
Previously, Uber was in talks with Grubhub about a potential acquisition. Those plans were reportedly dropped because of antitrust concerns.
“Grubhub is the best food delivery company in the U.S. and it is the only one which is culturally similar to Just Eat Takeaway.com,” Just Eat said in a press release.
However, unlike an Uber-Grubhub deal, a lack of geographic overlap will limit the synergies provided by a Grubhub-Just Eat deal, wrote TheStreet’s Eric Johnsa.
Additionally, “a Grubhub/Just Eat merger will do nothing to reduce the number of major players in a U.S. food delivery market that has been seeing intense price competition and promotional activity from a current count of four (Uber, Grubhub and privately-owned DoorDash and Postmates).”
Here’s what TheStreet’s Jim Cramer has to say about the acquisition:
“I wish it had merged with Uber because then there would be a consolidation, the stock would be up more,” said Cramer. However, he added that the existing merger means Grubhub CEO Matt Maloney gets to "stay at it."
And as a restauranteur, Cramer said, "What matters is that there's competition."
Grubhub shares rose 6.76% in early trading Thursday to $63.04.