|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||85.70 - 87.00|
|52-week range||52.00 - 90.20|
|Beta (5Y monthly)||-0.06|
|PE ratio (TTM)||N/A|
|Earnings date||13 Feb 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||61.81|
(Bloomberg) -- Amazon.com Inc. has offered Deliveroo a loan after a U.K. probe into the food-delivery startup’s last funding round threatened a cash crunch, people familiar with the matter said.Without the backing from Amazon, Deliveroo ran the risk of running low on capital, the people said. While the size of the loan is unclear, the London-based company has significant funds to continue operating, they said, asking not to be identified because the matter is private.A spokesman from Deliveroo declined to comment. An Amazon spokesman initially referred to an earlier statement that said Deliveroo should have “broad access to investors and supporters.”Amazon led a $575 million investment into Deliveroo in May. It was frozen in a surprise move by the Competition and Markets Authority, which has said Amazon’s bid to buy a minority holding in the company had the potential to damage competition in restaurant and grocery delivery. The U.K. competition regulator said last month that it would conduct an in-depth investigation of Amazon’s approximately $500 million investment and will rule on the deal by June 11.Amazon’s loan will be converted into equity if the CMA approves the original deal, the people said. In a statement following the original publication of this story, an Amazon representative said the company continues “to comply with the Initial Enforcement Order issued in June, which requires the parties to operate separately and restricts the parties from entering into non-ordinary course agreements like a loan. Deliveroo and Amazon have been working closely with the CMA and will continue to do so.”Deliveroo had about 185 million pounds ($240 million) in cash and cash equivalents at the end of 2018, according to its latest annual report. While global sales increased 72% in 2018, its net loss before tax widened to 232 million pounds.The intervention signals Seattle-based Amazon’s commitment to expand in the restaurant food delivery market, after winding down its own service in the U.K. and the U.S., which failed to win significant market share.Amazon Prime offers grocery deliveries to major British cities within two hours, but it faces domestic competition from the likes of Ocado Group Plc, an online grocery pioneer that makes its own deliveries and licenses its technology to traditional food shops.Deliveroo Chief Executive Officer Will Shu, a former Morgan Stanley investment banker, previously told Bloomberg that he hopes to tap Amazon’s operational and logistics expertise.While Deliveroo waits for the deal to be approved by the CMA, rivals are busy consolidating. Takeaway.com NV last week declared victory in the battle for Just Eat Plc, while Germany’s Delivery Hero SE said in December it would take control of South Korea’s biggest food delivery app, Woowa Brothers Corp. Prosus NV is also looking to continue doing deals in the sector after losing out in the Just Eat deal.(Updates with Amazon comment in the fifth paragraph.)To contact the reporter on this story: Giles Turner in London at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Amy Thomson, Nate LanxonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Prosus NV hasn’t lost its appetite for food delivery, even after the e-commerce giant was defeated in a grueling $8 billion bidding war for U.K. firm Just Eat Plc.Takeaway.com NV last week declared victory in the battle for Just Eat, saying investors holding 80.4% of the shares had formally backed its all-stock bid and rejected a cash offer from Prosus. But the Naspers Ltd.- controlled company has alternative targets to pursue, according to head of ventures and food, Larry Illg.“We continue to look at lots of different options in this space,” Illg said in a phone interview.Prosus -- spun off by South African parent Naspers in September -- has targeted food delivery as a key market for investment as more people opt to order in meals rather than cook. The company also has stakes in Delivery Hero in Germany and India’s Swiggy alongside a controlling stake in iFood in Brazil.One option for further expansion could even see Amsterdam-based Prosus going back to the negotiating table with Takeaway, which is based in the same city. The new owner of Just Eat has said it will consider selling the British firm’s 33% stake in iFood, in which Prosus is the majority shareholder.Prosus would consider buying more of the Brazilian firm, though an additional investment would have to make financial sense and won’t be “something that we would do at all costs,” Illg said.“It’s strictly about the financials because it wouldn’t change anything about how we help manage the business,” he added.Illg’s comments come as food-delivery companies race to consolidate to withstand fierce competition from firms such as Uber Technologies Inc.’s Uber Eats and myriad other apps. Takeaway’s new combined company, listed in London, will become one of Europe’s largest food-delivery operations after the deal is completed.Grubhub Inc. last week said it “unequivocally” isn’t running a sale process, denying reports in The Wall Street Journal and New York Post that the U.S. firm is on the auction block. Meanwhile, Amazon.com Inc.’s attempt to purchase a minority stake in British food delivery startup Deliveroo has run into unexpected scrutiny from U.K. antitrust regulators who’ve opened an in-depth investigation into the deal.Asked about Grubhub or Deliveroo as possible investment targets, Illg declined to comment, but added Prosus isn’t fixated on pursuing deals in a specific location.“We’re not looking to color in white spaces on the map. It’s very opportunistic,” he said.To contact the reporter on this story: Natalia Drozdiak in Brussels at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, John BowkerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Online food ordering company Takeaway.com has won the battle for Britain's Just Eat with a 6.2 billion pound ($8 billion) share offer that will create one of the world's largest meal delivery companies. Takeaway said that 80.4% of Just Eat shareholders had agreed to its all-share offer, passing a 50% threshold needed to make the offer unconditional. "I am thrilled," Takeaway CEO and founder Jitse Groen said in a statement.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Takeaway.com NV has won a months-long bidding war for Just Eat Plc, ending a contentious battle with Prosus NV and creating Europe’s largest food-delivery operation at a time of heightened competition in the industry.Just Eat investors holding 80.4% of its shares have formally backed Takeaway’s all-stock bid, which values the company at about 6.1 billion pounds ($8 billion), Amsterdam-based Takeaway said Friday, confirming an earlier Bloomberg report.The new venture, which currently has a combined market value of about $14 billion, will merge two European food delivery companies at a time of heightened competition in the industry, with rivals such as Uber Technologies Inc. facing off for a share of the fast-growing sector.Following completion of the merger, Takeaway has pledged to explore exiting Just Eat’s 33% stake in Brazil’s iFood, in which Prosus also invested. Takeaway has said it will return about 50% of the net proceeds to shareholders of the combined group.The new company, based in Amsterdam and listed in London, will be called Just Eat Takeaway NV and be the biggest of its kind in Europe. A key battleground will be the U.K., with Uber Eats and Deliveroo investing heavily in the country and expanding from the logistics of delivery -- getting the food from the restaurant to your door -- to launching rival marketplace platforms that concentrate on aggregating available eateries for users.Takeaway’s victory also means it is buying back it’s first attempt at cracking the U.K. market. It launched in the country in 2012, but sold the business four years later to Just Eat, after struggling with growth.Food FightThe Dutch firm announced an all-stock bid for Just Eat in late July valuing the British company at about 731 pence per share, or 5 billion pounds. Prosus, a spinoff from South African media giant Naspers Ltd., swooped in with a hostile cash offer in October, sparking the bidding war.Following Friday’s announcement, Prosus CEO Bob van Dijk said the company would pursue other alternatives.“Just Eat is not an acquisition we wanted to make at any cost” he said. “While we have significant financial capacity we believe that our final offer of 800 pence per share was appropriate in light of the investment required.”Takeaway Chief Executive Officer Jitse Groen, who will lead the new company, was publicly irritated by the Prosus challenge. When asked about whether he’d have to raise his offer at an industry conference in November, he said “I don’t want to be the idiot that runs into a ratio that doesn’t make any sense.”But after a rejection from Just Eat, Prosus publicly raised its bid twice before Takeaway announced its final offer in December, valued at about 916 pence per share at the time.Prosus had argued it has the resources to make the significant investments in Just Eat necessary for it to stay competitive. But Takeaway’s proposal ultimately won support from shareholders including Aberdeen Standard Investments, which said the stock deal would let it maintain exposure to the fast-growing online food delivery market. Just Eat holders will own 57.5% of the combined entity.Deal WaveThe battle between Prosus and Takeaway is one front in larger, sometimes messy, attempts to consolidate the food-delivery industry. Competition in many markets is fierce and profitability is elusive. London-based Just Eat reported an 8.8 million pound net loss in the first half of the year. Takeaway reported a 37.4 million-euro ($41.5 million) loss for the period.Grubhub Inc. put out a statement Thursday that it “unequivocally” isn’t running a sale process, following media reports that it was considering a potential sale. Still, the reports spurred calls for consolidation from analysts.Read more about the analysts’ calls for industry consolidation here.Amazon.com Inc.’s attempt to purchase a minority stake in U.K. delivery startup Deliveroo has drawn unexpected scrutiny from antitrust regulators and the $500 million deal faces an in-depth investigation from the Competition and Markets Authority.Takeaway spent about $1 billion for the German operations of rival Delivery Hero SE in a deal announced in late 2018. Delivery Hero announced last month that it would take control of South Korea’s biggest food delivery app Woowa Brothers Corp., at a $4 billion valuation. Spanish food delivery startup Glovo has drawn preliminary interest from Uber and Deliveroo, people familiar with the matter had said.The deal activity has also led to overlapping ownership stakes, which caused controversy in the Just Eat deal. Prosus was the largest shareholder in Delivery Hero, which was one of the biggest investors in rival bidder Takeaway.(Adds comment by Prosus CEO)To contact the reporters on this story: Natalia Drozdiak in Brussels at email@example.com;David Hellier in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg Opinion) -- The appetite for major consolidation sweeping the global food delivery industry has finally reached the U.S. Now the big question is, which combination would be easier to stomach? The fly in the soup may, as ever, be SoftBank Group Corp.Waves of dealmaking have reduced the number of online food delivery players in markets such as the U.K. and South Korea to just two or three. In Germany, there’s only one — Takeaway.com NV. Yet the U.S. still has four major rivals: Grubhub Inc., SoftBank-backed DoorDash Inc., Uber Technologies Inc., another company in SoftBank’s stable, and the smaller Postmates Inc.Grubhub is “considering strategic options including a possible sale,” the Wall Street Journal reported on Wednesday. The biggest U.S. player until 2018, it has lost market share to its venture capital-backed peers, and the stock had fallen 63% from its peak before the news hit.The Chicago-based firm’s business model differs from its rivals. While the likes of Uber Eats provide a network of couriers to deliver food from their network of restaurants, Grubhub has operated largely as a digital platform since its founding in 2004. It simply connected restaurants to customers, leaving the eateries responsible for actually delivering the food. Under CEO and co-founder Matt Maloney, it became the dominant destination to order food online in the U.S.His platform approach was a lot more profitable. Because Grubhub didn’t have to shoulder the costs of couriers, and just took a cut of each meal ordered, it was able to enjoy Ebitda representing more than 20% of sales between 2013 and 2017, when competition started to ramp up. Its rivals have always been loss-making.But that model also made it harder to attract major fast-food chains such as McDonald’s Corp., which don’t want to have to take on the fixed cost of maintaining a network of couriers themselves. So Grubhub has belatedly started building out that capability in an effort to defend its market share. However, that’s hurt profitability. Still, despite those headwinds, Grubhub remains an attractive business, not least because of its dominant position in New York, where credit-card data analysis firm Second Measure estimates it has 67% market share.The difficulty lies in the deal price. Based on Grubhub’s cost of capital and anticipated 2022 earnings, a buyer would probably need to find annual savings exceeding $500 million by the end of that period to justify paying a 30% premium — even to the share price the day before the Wall Street Journal report, which would value the firm at about $6 billion including debt. Such savings would be a near impossible ask: Grubhub’s operating expenses over the past 12 months totaled just $1.2 billion. It would instead be a risky gamble on increased pricing power allowing the new firm to improve profitability enough to service any new debt. And the path to profitability for firms with their own couriers remains unclear. That probably rules out an approach by Amsterdam-based tech investor Prosus NV, which has no local business, reducing the opportunity both to find synergies and to remove a market competitor.A merger with one of Grubhub’s existing U.S. rivals therefore seems a more rational solution. An all-stock combination would reduce concerns about justifying a capital outlay on a firm with low returns, while offering greater opportunities for cost savings and increased pricing power. And combining Grubhub’s major network of restaurants with a rival’s couriers could prove attractive.But there are problems here, too. San Francisco-based DoorDash, arguably the most logical candidate strategically, was valued at nearly $13 billion in its most recent funding round. That sky-high figure would be a problem for Grubhub shareholders. Their firm may not be growing as quickly as DoorDash, but it is similarly sized and a lot more profitable. It’s hard to see them accepting a merger where DoorDash investors ended up with more than two-thirds of the combined entity.Yet giving Grubhub shareholders a bigger stake could require DoorDash’s investors to write down the value of their holdings in the company. And that’s the last thing that SoftBank needs, fresh as it is from a year where underperforming investments such as Uber and troubled coworking-space trailblazer WeWork already prompted a $4.9 billion writedown. SoftBank is one of DoorDash’s biggest investors.A combination with Uber Eats is the best alternative to DoorDash. But SoftBank again might create difficulties. If push came to shove, it’s more likely to favor an Uber Eats-DoorDash tie-up, rather than continuing to back two companies fighting each other for customers and restaurants.Which leaves Postmates, the San Francisco-based firm which delivers everything from groceries to pizza and just expanded beyond food with an alliance with retailer Old Navy. It’s the less attractive solution for Grubhub, which would have to be the acquirer, and would be unlikely to add the scale needed to compete effectively. But such a combination does have some industrial logic — adding Postmates’s network of couriers to Grubhub’s restaurants — and is less likely to raise the hackles of antitrust regulators.Were SoftBank not at the table, a combination with DoorDash or Uber Eats would make the most sense. But as it stands, Grubhub could be left fighting for the scraps.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Dutch food ordering company Takeaway.com said on Thursday its shareholders had approved plans for the company's proposed 5.9 billion pound ($7.7 billion) acquisition of British peer Just Eat PLC . In a statement, Takeaway said its plan for an all-share merger had been approved at an extraordinary meeting of shareholders in Amsterdam. Takeaway is vying with rival Prosus to buy Just Eat.
(Bloomberg) -- Takeaway.com NV is set to declare final victory in the five-month takeover battle for U.K. food-delivery company Just Eat Plc, people with knowledge of the matter said.Investors holding more than half of Just Eat stock have indicated they’ll agree to Takeaway’s all-stock bid, which values the company at about 6 billion pounds ($7.8 billion), according to the people. The preliminary tally includes those who plan to formally tender in the coming days, the people said, asking not to be identified because the information is private.Takeaway’s proposal requires a majority of shareholders to accept in order to be successful. Crossing the 50% threshold would mean the bid, which has been recommended by the Just Eat board, has prevailed over a rival cash offer from Prosus NV.Takeaway said Dec. 19 it had acceptances and commitments from investors holding 46.07% of Just Eat stock. Investors have until 1 p.m. London time on Jan. 10 to tender their shares.Just Eat has been urging investors to accept the Takeaway bid, which will merge the two European food delivery companies and give the combined firm the scale to take on the likes of Deliveroo and Uber Eats. Shares of Just Eat were down 0.5% at 9:24 a.m. Monday in London, while shares of Takeaway were unchanged. Representatives for Just Eat and Takeaway declined to comment, while a representative for Prosus said she couldn’t immediately comment.Takeaway announced an all-stock bid for Just Eat in late July valuing the British company at about 731 pence per share. Prosus, a spinoff from South African media giant Naspers Ltd., countered with a cash offer in October.After a rejection from Just Eat, Prosus publicly raised its bid twice before Takeaway announced its final offer in December of about 916 pence per share. Takeaway’s proposal has won support from shareholders including Aberdeen Standard Investments, which said the stock deal would let it maintain exposure to the fast-growing online food delivery market through the combined entity.(Updates with Monday share movement in fifth paragraph)\--With assistance from Natalia Drozdiak.To contact the reporter on this story: David Hellier in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Scent at email@example.com, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- Amazon.com Inc.’s purchase of a minority stake in U.K. food startup Deliveroo faces a British probe in another sign of mounting antitrust scrutiny of American tech giants.The Competition and Markets Authority said Friday it’s opening an in-depth investigation of Amazon’s investment of about $500 million, saying it risked a “substantial lessening” of competition “in the supply of online food platforms in the U.K. and in the supply of online convenience groceries.”The regulator now has until June 11 to rule on the deal after the companies didn’t offer remedies to allay its earlier concerns over the tie-up.Many were surprised by the CMA’s initial decision to investigate the transaction because the agency doesn’t typically review minority acquisitions. Lawyers said scrutiny of the deal may be down to growing fears about monopolies in Big Tech that have been allowed to go unchecked in the past.Deals like Facebook Inc.’s 2014 acquisition of WhatsApp sailed through with relatively little antitrust oversight at the time, but are now raising questions among regulators who see large tech companies leverage user data from those acquisitions in other areas to boost their market power.“A homegrown U.K. business like Deliveroo should have broad access to investors and supporters,” an Amazon spokesman said in an emailed statement. He added the company believes the investment “will lead to more pro-consumer innovation by helping Deliveroo continue to build its world-class service and remain competitive in the restaurant food delivery space.”The in-depth probe comes as competition heats up in the global food delivery market.The likes of Uber Technologies Inc.’s Uber Eats platform are going up against a proliferation of apps for a share of the fast-growing sector, while other players are consolidating.Dutch groups Prosus NV and Takeaway.com NV have been vying to take over British food delivery firm Just Eat Plc, while Germany’s Delivery Hero SE in December said it would take control of South Korea’s biggest food delivery app, Woowa Brothers Corp.In an emailed statement, Deliveroo said it was “confident that we will persuade the CMA of the facts that this minority investment will add to competition, helping restaurants to grow their businesses, creating more work for riders, and increasing choice for customers.”(Updates with Amazon comment in sixth paragraph)\--With assistance from Aitor Ortiz, Diana Gomes and Jonathan Browning.To contact the reporters on this story: Eddie Spence in London at firstname.lastname@example.org;Natalia Drozdiak in Brussels at email@example.comTo contact the editors responsible for this story: Christopher Elser at firstname.lastname@example.org, Peter Chapman, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Just Eat backed a final 5.5 billion pound ($7.2 billion) all-share offer from Takeaway.com on Friday, saying a tie-up to create one of the leading online food delivery companies was more compelling than a rival cash bid from Prosus. Takeaway and Prosus both raised their bids for the British company on Thursday, with Amsterdam-listed Takeaway's all-share offer trumping the 800 pence a share offered by Prosus at its current stock price. "The board of Just Eat continues to believe that the combination with Takeaway.com is based on a compelling strategic rationale that allows shareholders to participate in the upside potential of the enlarged group," Just Eat said.