European food-ordering firm Just Eat Takeaway.com said on Wednesday it is acquiring U.S. peer Grubhub Inc in an all-stock deal that, when completed, would create the world’s largest food delivery.
Grubhub is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as nearly 24 million active diners.
The Transaction represents Just Eat Takeaway.com’s entry into online food delivery in the United States, following its recent merger with Just Eat plc. Dutch-based Takeaway had acquired Just Eat in January for $7.8 billion.
The Combined Group will be built around four of the world’s largest profit pools in online food delivery: the U.S., the United Kingdom , the Netherlands and Germany.
Just Eat Takeaway.com owns the leading Canadian food delivery business SkipTheDishes.
Uber approached Chicago-based Grubhub in May for an all-stock deal that fell apart this week. In a statement, Uber said the food delivery industry needs consolidation, but “that doesn’t mean we are interested in doing any deal, at any price, with any player.”
Grubhub’s stock price rose nearly 6% in aftermarket trading and Just Eat Takeaway shares closed more than 13% lower in Amsterdam after the companies disclosed they were in talks in the late afternoon.