Just Eat offloads Netherlands and Belgium business to Takeaway.com for €22.5M
Is the online take-out ordering market winner takes all? At the current rate of consolidation, which has seen a number of also-ran properties changing hands, the answer might well be yes.
The latest move sees publicly-listed Just Eat sell its Benelux businesses (the Netherlands and Belgium) to rival Takeaway.com. The transaction consists of €22.5 million payable in cash, of which 80 per cent is being paid up front, and 20 per cent will be paid 6 months after completion, “subject to the satisfaction of certain obligations”.
In a statement, David Buttress, CEO of Just Eat, explains the reasoning behind offloading the company’s Benelux operations, citing the need to be number one in each country in order to “drive sustainable profitability”. In the Netherlands and Belgium, that clearly wasn’t the case for Just Eat, hence today’s sale.
“We have always been clear that the competitive dynamics of our industry demand clear market leadership to drive sustainable profitability,” he says. “The disposal of our Benelux business, where we are number two, delivers on that strategy and comes at the right time for Just Eat. We are the clear leader in our remaining 12 markets and it is appropriate that our time and resources are focused on building on the strong growth we are seeing across those businesses in future.”
Jitse Groen, CEO and founder of Takeaway.com, chimes in on a similar note, saying that the transaction fits the company’s own strategy to strength its leading position across much of Continental Europe. “This transaction is in line with Takeaway.com’s strategy to drive sustainable leadership positions in each of the 11 markets it operates in,” he says in a statement.