GrubHub (NYSE:GRUB) is the subject of a merger agreement on Thursday that has GRUB stock heading higher.
The agreement will have GrubHub combining with Just Eat Takeaway.com, which is a European food delivery service. This will have the company acquiring all outstanding shares of GRUB stock.
According to the agreement, the GrubHub merger will have Just Eat Takeaway.com offering 0.6710 American depositary receipts of its common stock for each share of GRUB stock that investors hold. That values GRUB stock at $75.15 per share, which is a roughly 27% premium over the stock’s closing price of $59.05 per share on Wednesday.
Just Eat Takeaway.com’s merger offer for GrubHub values the company at $7.3 billion. It will also have GRUB shareholders controlling 30% of the new company after the merger is complete.
The deal will also create the largest food delivery business outside China. The combined company will be based out of Amsterdam and the North American headquarters will be in Chicago.
Once the merger deal is complete, GrubHub founder and CEO Matt Maloney will lead the group’s North American business. He will also join the company’s Management Board. Two directors at GRUB will also join Just Eat Takeaway.com’s Supervisory Board.
The GrubHub merger deal still needs to complete customary closing conditions. That includes getting approval from investors and regulators. So long as this all goes well, the companies expect the deal to close in the first quarter of 2021.
GRUB stock was up 4.7% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.