On the heels of Amazon getting permission from the competition authority to proceed with an investment leading a $575 million round for meals delivery startup Deliveroo in the UK, two of Deliveroo’s biggest competitors got their own £6.2 billion mergers approved, and so they have subsequently picked up an extra $756 million to come out fighting.
Today, the competition regulator in the UK formally gave the nod to the merger, originally valued at $10 billion but more presently valued at £6.2 billion, between UK’s JustEat and the Netherlands’ Takeaway.com.
And along with that, the merged firm announced that it had raised €700 million ($756 million) in new outside funding in the form of new stocks and convertible bonds.
JustEat and Takeaway had already been respectively trading on the London and Netherlands stock exchanges — on LSE as ‘JET’ and on AMS as ‘TKWY’ — and they stated they would use the capital and a convertible bond issue to pay down debts, enterprise development and other company purposes and potential acquisitions in what stays a very fragmented and crowded market for food delivery in Europe and elsewhere, regardless of the rapid scaling we’re seeing among the biggest players.
Both noted that the placement is conditional on the two getting successfully admitted to trade as a merged firm. They’ve made the application for this, and it’s anticipated to become effective on April 27.