In This Article:
Just Eat Takeaway (JTKWY) shares are skyrocketing Monday following news of a proposed $4.3 billion all-cash acquisition by Dutch technology investor Prosus (PRX.AS). If completed, this transaction could position Just Eat Takeaway as the fourth-largest food delivery service based on gross transaction value.
Wealth co-hosts Madison Mills and Brad Smith analyze the key details and potential market implications of this development.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Angel Smith
We got to talk about European food delivery giant, Just Eat Takeaway, set to be acquired by Dutch technology investor Prosus in an all-cash deal worth about $4.3 billion. The deal is set to create the world's fourth largest food delivery company by gross transaction value. Look at the reaction in the shares today, Maddie. Up 53%.
Huge. You can see that's a 52-week high for this stock, especially after Just Eat has had a lot of issues in Europe following the pandemic. There was an initial huge bump in a lot of these food delivery names like Takeaway stock, but following the depths of the pandemic, it was hard for those companies to kind of hold on to those gains. And we saw Just Eat even selling its Grubhub arm at a significant loss, and that was one of the many challenges they faced over that time period. Now you've got the Prosus CEO saying he wants to create a European tech leader by combining Just Eat's market presence with Prosus's investment experience. And that's exactly what you're seeing playing out in the stock action. You've got this stock. It was up nearly 55% earlier, as I mentioned, hitting that 52-week high. A little bit of a different story when it comes to Prosus, down nearly 7%, perhaps an idea that they're paying a little bit too much for this all-cash deal about $4.3 billion there that values Just Eat shares at about 20 pounds each, and that would be a 63% premium based on where the share price was when the deal was announced, Brad.
Absolutely massive move that we're seeing here on the day. We'll continue to track that.
