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Just Eat & Takeway.com get merger nod; raise EUR 700M in funding

Just Eat & Takeway.com get merger nod; raise EUR 700M in funding
Just Eat & Takeway.com get merger nod; raise EUR 700M in funding

 

  • The merger deal is to be valued at 6.2 billion pounds.
  • This deal follows CMA’s nod to the Amazon and Deliveroo merger.

In a recent news, UK competition watchdog has given a nod to the merger deal between two food delivery behemoths, Just Eat and Takeaway.com. As per reliable reports, the clearance of 6.2 billion pound deal comes days after Britain’s approval of Amazon’s investment in Deliveroo.

It has been reported that the combined Just Eat Takeway.com JV has generated a funding of 700 million euros, produced in form of new shares and convertible bonds. Speculations have it that the acquisition deal was initially valued at USD 10 million but now it is being valued at 6.2 billion pounds.

According to a press release, it was mentioned that the fresh funding generated by the companies unitedly would be used to partially pay down debts, and revolving credit facilities currently being utilized by both of these companies while working extensively on the future opportunities that may arise.

Britain’s Competition and Markets Authority (CMA) announced that it was unconditionally approving the companies’ merger deal. Post analyzing the future of this deal, CMA further said that it is now clear that the deal would not reduce competition in the market.

Online food delivery services have been an eminent business in the world of tech as of now, as they bring together restaurants and consumers who are currently stuck at home, due to ongoing coronavirus spread and are craving for restaurant food. However, the governmental orders amended pertaining to lockdown given the rising cases have brought about a halt in the business growth of these companies.

Apparently, the shares in Just Eat Takeaway.com, which now trades as a special entity on the London Stock Exchange recorded a downfall of over 2% as on 23rd April morning, accounting to the massive COVID-19 outbreak.

Source credit: https://techcrunch.com/2020/04/23/justeat-takeaway-7-6b-merger-approved-pair-pick-up-756m-in-new-funding/