Two of Europe's largest food supply companies have signed a $ 11.1 billion deal to unite with the likes of
in a fast-growing market.
Dutch food provider
NV said on Monday it had agreed to a deal with all shares registered in London
The PLC is subject to final approval by the boards of both companies, shareholders and regulators.
The combination would create one of the world's largest food supply companies, a joint statement said. The companies said combined 360 million orders last year to about 7.3 billion euros ($ 8.1 billion).
Size is becoming increasingly important for suppliers as they expand on unused markets and as more consumers are willing to pay for a fast delivery of their meals and groceries in their workplaces or homes. Delivery will represent 10% of restaurant sales by 2022, according to the BBQ broker William Blair.
Analysts say more food supply companies are looking to unite their efforts to win smaller local players.
Earlier this year, Amazon ran a $ 575 million funding round for Deliveroo to help finance the Uber's food supply battle with the US company. In December, Takeaway.com agreed to acquire the German division
for EUR 930 million.
Amazon is part of a US food supply partnership, and its investment in Deliveroo, which also supplies food, has attracted close scrutiny by the competition regulator in the country. Just Eat and Takeaway.com do not expect to raise red flags with antitrust authorities because they do not overlap geographically, a Just Eat spokesman said, adding that their only shared market is Switzerland.
Takeaway.com has operations in Europe, while Just Eat operates in Europe as well as in Australia, New Zealand and Canada.
In the US shipping company DoorDash Inc. looking for funding to help develop. The Wall Street Journal earlier reported that the company is working on a new round of funding that can estimate it at nearly $ 13 billion, referring to people familiar with the issue, almost doubled its value in February this year.
Investors in venture capital went out to $ 8.2 billion in food supply companies in 2018, compared with $ 4.7 billion in 2017, according to a Pitchbook market research firm.
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