Just Eat Takeaway to buy Grubhub of the US for $7.3bn

Just Eat Takeaway has agreed to buy Grubhub of the US for $7.3bn (£5.8bn) in an all-share deal to create the world's biggest online food delivery company outside China.

The combined group will have operations in 25 countries with major bases in the UK, the US, Germany and the Netherlands. Just Eat confirmed the companies were in advanced talks on Wednesday afternoon after press reports about the possible merger.

Just Eat will pay Grubhub stockholders American depositary receipts worth 0.6710 Just Eat shares for each of their Grubhub shares. The deal values each Grubhub share at $75.15 based on Just Eat's closing share price on 9 June and values the US company's total equity at $7.3bn.

On completion Matt Maloney, Grubhub's chief executive and founder, will join Just Eat's management board and lead the combined group's North American business. Two Grubhub directors will join Just Eat's supervisory board.

Jitse Groen, Just Eat's founder and CEO, said: "Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents. Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world's largest food delivery business outside China."

Just Eat shares fell 3% to £73.94 at 08:09 BST.

The deal shows Just Eat moving rapidly to consolidate the international food delivery market after the UK gave its delayed approval to Takeaway.com's acquisition of Britain's Just Eat in April. The Netherlands' Takeaway bought Just Eat of the UK in January but the deal was thrown into doubt when the UK's competition regulator opened a late-stage investigation.