The acquisition of US food delivery startup Grubhub by European giant Just Eat Takeaway has today received all regulatory approvals to proceed.
First announced on 10 June, it sees Just Eat Takeaway acquire 100% of the shares of Grubhub for $7.3bn (£5.75bn).
The European company beat rival Uber to the acquisition, who missed out over regulatory concerns.
Today’s announcement sees the sign-off of the deal from the Committee on Foreign Investment in the United States. In July the United Kingdom Competition and Markets Authority also approved the deal.
This, combined with a permission to terminate the waiting period early that was granted in July by the US Federal Trade Commission, means that Just Eat Takeaway now has all the paperwork in place to finalise the acquisition.
The two companies now expect it to be fully completed in the first half of 2021, although an amendment announced today allows them until 31 December 2021 to take all the required steps, including registering Just Eat Takeaway shares in the US.
Grubhub acquisiton sees Just Eat Takeaway claim global might as deliveries boom
The acquisition of Grubhub by Just Eat Takeaway transforms the company from a European leader into a global player at a time when the food delivery market is booming amid Covid-19.
According to the BBC, the combined companies will have 70 million active customers, with around 600 million orders each year.
In 2019 Just Eat Takeaway and Grubhub together reported revenues topping $3bn, with combined profits of $447m. And in 2020 that is expected to be considerably higher.
In the first half of 2020 Just Eat Takeaway reported a 44% year-on-year increase, driving revenues to €1bn ($1.17bn), and an increase in orders of 32%.
Grubhub, meanwhile, reported revenues totalling $822m in the first half of 2020, with gross food sales in Q2 climbing by 59% to $2.3bn.