The recent announcement by Prosus, a well-known tech investment institution, has stirred excitement across the European market as it reaches a substantial conditional agreement to acquire Just Eat Takeaway (TKWY)—the largest food delivery platform in Europe—for a staggering €4.1 billionThis acquisition is poised to create one of the world's largest food delivery groups, now standing at the fourth position globally.

What truly highlights this deal is its significance as the largest acquisition yet for Prosus, a company that notably holds substantial shares in Tencent, which has reportedly yielded remarkable profits exceeding $140 billion for the firmThe ramifications of this acquisition extend well beyond operations; they impact market sentiments and encourage a surge in stock prices, evidenced as TKWY shares skyrocketed by 53% on the announcement day, elevating the company’s market capitalization to €3.9 billion.

The significance of this acquisition is underlined by TKWY's substantial history since its establishment in 2000. Interconnecting diners with restaurants via a user-friendly website and mobile application, TKWY grew rapidly and was famously dubbed “The European Meituan,” a nod to its Chinese counterpart known for its food delivery and various lifestyle servicesThe company underwent a tumultuous journey post-2020, where its market capitalization once surged above €16 billion, only to face declining stock prices in following years—plummeting to €2.5 billion by last week.

On the acquisition announcement day, it was reported that Prosus’s offer valued TKWY shares at €20.30 eachThis represented a roughly 49% premium over the company’s three-month volume-weighted average price, and a more impressive 63% above TKWY's closing price of €12.43 just days priorThe immediate market reaction reflected investors' optimistic anticipation of what this deal could mean for the future of TKWY, a company now set in its pursuit for strategic growth through enhanced investment opportunities.

Jitse Groen, the founder and CEO of TKWY, articulated that this acquisition represents “immediate, certain, and attractive value for investors” and facilitates investment avenues beyond what public market constraints typically allow

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Groen envisions that under the Prosus umbrella, TKWY can evolve into a “faster-growing, more profitable company” further diversifying its investments beyond food delivery into groceries, fintech, and other adjacent sectors.

The concept of TKWY being referred to as “The European Meituan” underscores its impressive foundation and operations within multiple marketsFounded in the Netherlands, TKWY expanded its reach and influence remarkably, completing its IPO at the pan-European Euronext Amsterdam and merging with Just Eat in 2020. Currently, the company operates across 17 international markets and maintains partnerships with approximately 356,000 local merchants, making it the largest food delivery service in Europe with a Gross Transaction Value (GTV) of €26.3 billion and total revenue reported at €5.085 billion in 2024.

Despite these impressive figures, the pandemic's end led to dramatic shifts in consumer behavior, significantly reducing TKWY’s once-thriving growth rates and causing a sharp decline in stock prices that peaked during the pandemic at €110.65 per shareThe firm faced additional challenges, including its de-list from the London Stock Exchange late last yearThis decision arose from the company’s aim to mitigate the administrative complexities, costs, and regulatory burdens associated with remaining listed on the Exchange, consequently narrowing its trading to the Amsterdam Stock Exchange.

Last November, TKWY disclosed plans to sell its American subsidiary Grubhub to a food delivery startup, Wonder, for $650 million—underscoring ongoing adjustments within their portfolioGrubhub, once acquired for $7.3 billion in 2020, faced intense scrutiny and an uphill battle to maintain profitability, further highlighted by TKWY's reported net loss of €1.65 billion for 2024, including €1.16 billion tied to Grubhub operations.

A noteworthy aspect of this acquisition is that Prosus is not just an ordinary investor; it’s backed by Tencent—the colossal player in the tech world

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This acquisition stands as one of the largest deals in Europe since 2025, signalling a strategic effort to consolidate food delivery service portfolios across continentsProsus CEO Fabricio Bloisi expressed enthusiasm regarding TKWY’s integration, suggesting that combining Prosus’s technological and investment prowess with TKWY’s established brand in significant European markets would generate unparalleled value for customers, partners, and shareholders alike.

Prosus views the takeover as a unique opportunity to bolster its presence and expand its stronghold in the European food delivery market while also complementing its existing operations outside EuropeWith TKWY’s solid consumer connections and established household names in food delivery, Prosus aims to build on this foundation and fuel future growth through reinvestment and operational enhancementsThe success seen by Prosus in markets such as Brazil, with their food delivery platform iFood, illustrates their potential to adapt a similar growth strategy to TKWY, focusing on technological advancements, product quality, and improved customer services.

The broader stakes of this acquisition become apparent when considering the background of Prosus, which has made vast investments worldwide, with special emphasis on creating momentum within the food delivery sectorThe current portfolio features the entirety of the Latin American food delivery platform iFood and a sizable 28% share in Delivery Hero—a globally recognized food delivery companyAdditionally, Prosus holds a significant stake of 25% in India's leading grocery and food delivery service, Swiggy, which has publicly debuted successfully in the Indian market.

Many still recognize Prosus primarily for its groundbreaking investment in Tencent back in 2001, where an acquisition worth merely $34 million now translates to an astonishing asset value exceeding $140 billionAs of January 6, 2025, Prosus maintained ownership of 2.214 billion Tencent shares, equating to a 23.99% stake.

Tencent has recently seen considerable stock price increases, with shares soaring collectively over 41% within a short span

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