Investing.com-- Prosus (AS:PRX) said on Monday it intends to buy food delivery major Just Eat Takeaway (AS:TKWY), a deal that will grant the Dutch technology giant entry into the European food delivery industry.
Just Eat shares soared more than 53% in Amsterdam, while Prosus (OTC:PROSF) stock fell around 7%.
The negative reaction in Prosus shares was anticipated by Citi analysts, who cited "shareholder skepticism from poor historical precedents in corporate consolidation in food delivery."
Prosus offered 20.30 euros in cash for each share in Just Eat, representing a premium of 63.3% to Just Eat’s Friday close. The offer values the delivery firm at 4.1 billion euros ($4.3 billion).
Acquiring Just Eat will allow Prosus to extend its food delivery presence into Europe, with the company holding stakes in several global food delivery services, including Delivery Hero AG (ETR:DHER), ifood, and Swiggy.
Delivery Hero stock jumped over 7% following the news.
Just Eat CEO Jitse Groen supported the buyout, stating that Prosus “fully supports our strategic plans, and its extensive resources will help to further accelerate our investments and growth across food, groceries, fintech and other adjacencies.”
"While there is a possibility of a counter bid, we believe Prosus is in a good position considering its offer price having over 60% premium to Just Eat Takeaway.com’s latest share price," RBC Capital Markets analysts commented.
The deal is one of the biggest European deals seen so far in 2025, and stands to further Prosus’ presence in the food delivery industry- a sector the company has invested heavily in over the past few years.
The company had in 2022 acquired a 33% stake in Brazil’s iFood from Just Eat.
Ambar Warrick contributed to this report.