Takeaway.com, the Amsterdam-based online food delivery platform, looks set to merge with UK rival Just Eat in a deal worth £8.2bn.

Both parties said that they have reached an “agreement in principle” for the deal, which under UK rules needs to be formally proposed by Takeaway.com by August 24.

Under the deal’s proposed terms, Just Eat’s shareholders would own 52.2% of the merged entity’s shareholding, with Takeaway.com shareholders owning the balance.

Takeaway.com would acquire Just Eat at 731p per share, which equates to a premium of 15% on Just Eat’s closing share price on July 26 last.

If it goes ahead, the deal will create one of the world’s largest online food delivery platforms. Takeaway.com and Just Eat between them processed 360 million orders worth €7.3bn in 2018.

In Association with

Just Eat launched in Denmark in 2001 but is currently headquartered in London. The business is based around an online food ordering platform that lists partnering restaurants’ menus, which customers can access through mobile and desktop apps.

In the last year or so, Just Eat has been developing its own delivery service for restaurants. The online food delivery business operates in several countries, including the UK, Ireland, France, Australia and Brazil. Restaurants are charged a commission – currently averaging around 14% -- per order that comes through the Just Eat platform.

Just Eat’s revenue in 2018 hit £780m, a 43% year-on-year increase. It booked a pre-tax profit of £102m, up 6%.

Takeaway.com was founded in Amsterdam in 2000 and operates a similar online food ordering model as Just Eat, while its Scoober food delivery service is available in 38 cities across Europe.

Takeaway.com operates in 10 European cities and in Israel. The business’s gross revenue in 2018 was €240m, up 44% on the year before. It charges restaurants an average commission of 12.1% and booked a loss of €14m in 2018, compared with a 2017 loss of €42m.

Should the deal go ahead, the combined Takeaway.com/Just Eat business will be headquartered in Amsterdam, while retaining a significant part of its operations in the UK. It will also be listed on the London Stock Exchange.

Jitse Groen (pictured), currently CEO of Takeaway.com, will assume the role of CEO of the combined group. Paul Harrison, CFO of Just Eat, would become CFO of the new entity, while Brent Wissink, currently CFO of Takeaway.com, and Jörg Gerbig, currently COO of Takeaway.com, will assume the role of co-COOs.

The deal will be a win-win for US investment firm Cat Rock, which has a stake in both Takeaway.com (5%) and Just Eat (2%). Cat Rock had been pushing for Just Eat to look at merger opportunities in the online food delivery space.

Earlier this year, it was reported that Just Eat made half of its Irish staff redundant as it moved to centralise operations in the UK. The business will continue to employ 30 staff here.