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Just Eat gobbles up Hungry House and SkipTheDishes | |
(about 1 hour later) | |
Online food delivery service Just Eat is expanding its presence in the sector by spending £266m on buying Hungry House and Canada's SkipTheDishes. | |
Just Eat, which began in Denmark in 2001 but is now based in London, operates in 13 countries. | |
Just Eat, and rivals such as Uber and Deliveroo, have expanded the food home delivery market and are battling for market share. | |
Just Eat said the acquisition would help to accelerate its growth. | |
The deal must be approved by the Competition and Markets Authority. | |
David Buttress, Just Eat chief executive, said he was confident the UK deal would get the nod from regulators. | |
"We think this brings benefits to both restaurants and consumers rather than diminishing them," he said. | |
David Reynolds, analyst at Jefferies, said the combination of Just Eat and Hungry House made sense. | |
"This deal not only consolidates the UK effectively, it also removes the possibility of a more radical combination for Hungry House, with Deliveroo for example, that may have been perceived as a threat to Just Eat's UK competitive position," he said. | |
David Buttress, chief executive of Just Eat, said: "Through this transaction, we would extend our market presence in the UK and sustain high levels of growth given the considerable opportunity in this market." | David Buttress, chief executive of Just Eat, said: "Through this transaction, we would extend our market presence in the UK and sustain high levels of growth given the considerable opportunity in this market." |
Just Eat is spending £200m on the Hungry House deal, and 110m Canadian dollars (£66.1m) on SkipTheDishes. | |
Shares in Just Eat rose 2.6% in morning trade to 615p, valuing the company at £4.15bn. Its shares have more than doubled since listing in 2014. |
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