Just Eat Brazilian subsidiary merges with iFood

Online takeaway marketplace Just Eat said it will merge its Brazilian business RestauranteWeb with online restaurant delivery iFood to expand its business in the South American market.

The joint venture will be called IF-JE Participações and will be 50.02% owned by Movile, an e-commerce company which invests in iFood.

Just Eat will transfer 100% of the share capital of its Brazilian subsidiary and make an investment of £3.5m in cash into the new company for future business expansion.

iFood founder and chairman Patrick Sigrist said the merger will be “a game changer in the Brazilian food delivery market”.

David Buttress, chief executive of Just Eat, said: “Brazil is a large and fast growing market and is an important part of our long-term growth strategy.

"The iFood founders and Movile have together built a great business and the combination with RestauranteWeb will create the clear market winner in this exciting market.”

Just Eat shares rose 0.03% to 290.1p on Friday at 08:36.