Prosus (AS:PRX) announced its intent to acquire Just Eat Takeaway (AS:TKWY) in a significant all-cash transaction worth €4.1 billion ($4.3 billion), representing a 63.3% premium over its Friday closing price.

Market Reactions and Analyst Insights

Following the news, Just Eat Takeaway’s shares soared over 53% in Amsterdam, while Prosus’s stock experienced a decline of nearly 7%, hinting at investor skepticism regarding consolidation in the food delivery sector.

Citi analysts have cautioned about historical challenges in food delivery mergers, while RBC Capital has suggested the possibility of a counteroffer but emphasized Prosus’s compelling bid.

Strategic Reasons for Prosus’s Acquisition

Prosus is expanding in Europe, aiming to solidify its footprint in food delivery as it already holds stakes in companies like Delivery Hero (ETR:DHER), iFood, and Swiggy. Just Eat’s CEO, Jitse Groen, expressed support for the deal, recognizing the resources from Prosus to enhance growth opportunities.

Future Considerations

Potential challenges include the need for regulatory approvals, particularly antitrust reviews, but Prosus’s existing interests might streamline that process. Competitors may still emerge due to the significant premium offered.

Success in this acquisition could be pivotal for Prosus, marking one of the largest merger and acquisition deals in Europe for 2025.