Investors of mobile food-ordering and delivery marketplace Grubhub (GRUB) have given the green light to complete the $7.3-billion acquisition of Grubhub by Just Eat Takeaway.com. The transaction is expected to close on June 15.
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This all-stock acquisition is expected to create one of the biggest online food delivery companies in the world. About 99.98% of Grubhub investors voted in favor of the deal.
Grubhub CEO Matt Maloney said, “We are pleased that Grubhub stockholders overwhelmingly supported the recommendation of Grubhub’s board of directors on the pending combination with Just Eat Takeaway.com and voted in favor of the transaction.” (See Grubhub stock analysis on TipRanks)
Additionally, Grubhub announced the launch of We Serve Restaurants, an initiative to help restaurants develop business in the post-pandemic world. This initiative includes digital tools to drive demand, a 360-degree marketing campaign, Grubhub Direct platform to allow commission-free orders, access to consumer data, and a grant program.
Recently, BTIG analyst Jake Fuller reiterated a Hold rating on the stock but did not assign any price target. Fuller thinks increased spending on logistics can be viewed by investors as a sign of GRUB’s post-acquisition intentions.
Based on 4 unanimous Holds, consensus among analysts is a Hold. Shares have dropped 19.5% so far this year.
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