Someone decided to spread its business in the middle of corona crisis and looks like TKWY shareholders disliked the deal. After the strong losses from the previous day in the course of the impending takeover of the US food delivery service Grubhub the shares of Just Eat Takeaway.com continued to fall.
After a weak start, the shares (AMS: TKWY) of the British-Dutch company on Euronext were initially turned positive, but then returned their profits and closed 3.8 percent in the red. Just Eat Takeaway.com’s sharer had reacted to the official announcement of takeover talks the previous day with high price losses in the double-digit percentage range.
The deal was announced in the night of Thursday. Just Eat Takeaway and Grubhub agreed on a purchase price of $ 75.15 per share. Grubhub is valued at approximately $ 7.3 billion when the acquisition. Just Eat is thus paying a premium of 27 percent on the latest pit lift closing price. Grubhub’s papers recently rose in New York by around five percent.
According to the company, the merger will create the largest food delivery company outside of China.
On Thursday, Delivery Hero’s stocks closed only slightly in a very weak overall market. Analysts had previously described the likelihood of Delivery Hero expanding into the US market as rather low. They only made further advances in Asia at the end of last year and secured the majority in South Korean Woowa.
The experts were initially surprised by the Just Eat Grubhub deal. The potential for synergies is limited and the market is very competitive, wrote Hubert Jeaneau from the Swiss bank UBS. Just Eat Takeaway has to invest a lot here, with an uncertain result. On the other hand, the US market also offers great opportunities.
JPMorgan analyst Marcus Diebel argued similarly. Barclays was also surprised to find a European food delivery service venturing into the US market. Expert Giles Thorne of Jefferies wrote that convincing Just Eat Takeaway.com shareholders of the deal should not be an easy task.
The bearish trend is currently very strong for JUST EAT TAKEAWAY. As long as the price remains below the resistance at EUR 88.90, you can try to take advantage of this bearish rally. The 1st bearish price target is EUR 83.72. Bearish momentum will boost if support is broken. Sellers will then use the following aid at EUR 78.15 as the target price. A breakthrough then gives sellers the opportunity to target EUR 68.32. Be careful considering the powerful bearish rally that is underway.