In a significant shift for its operations, Just Eat Takeaway.com, the Anglo-Dutch food delivery giant, announced plans to delist from the London Stock Exchange (LSE) by the end of December. The decision leaves Amsterdam as the company’s sole trading venue and marks a setback for the U.K.’s ambition to attract high-growth tech firms to its stock market.
Why Just Eat Takeaway is Leaving the LSE
Streamlining Operations
The company cited several reasons for the delisting, emphasizing a desire to simplify operations and reduce costs. Maintaining dual listings requires navigating different regulatory and disclosure requirements, which Just Eat Takeaway said created unnecessary complexity and administrative burdens.
Low liquidity and trading volumes on the LSE further reinforced the decision. This suggests that the company sees greater value in focusing its trading activities on the Amsterdam exchange, where it has historically had a stronger market presence.
Effective Dates
The delisting will take effect at 8 a.m. London time on December 27, with the last day of trading on the LSE set for December 24.
Market Reaction
Just Eat Takeaway shares dipped 1.5% following the announcement, signaling investor caution as the company pivots its focus solely to Amsterdam.
Implications for the U.K. Stock Market
A Blow to London’s Tech Sector Aspirations
The decision is a setback for the U.K.’s efforts to position itself as a hub for high-growth tech companies. Amidst global competition for listings, the move highlights challenges facing the LSE, including low trading activity for certain tech firms.
With Brexit reshaping financial dynamics, attracting and retaining innovative firms has been a strategic goal for the U.K., but exits like this may deter other tech businesses from pursuing a London listing.
Regulatory and Competitive Context
Just Eat Takeaway’s departure underscores broader concerns about the LSE’s ability to compete with exchanges like Amsterdam, which benefits from a streamlined regulatory framework and proximity to European markets.
Recent Developments at Just Eat Takeaway
Grubhub Sale at a Steep Loss
This announcement comes shortly after Just Eat Takeaway agreed to sell its Grubhub arm to U.S.-based online takeout startup Wonder for $650 million. The sale represents a significant markdown from the $7.3 billion the company paid for Grubhub in 2020.
The divestiture reflects ongoing efforts to stabilize the business, focus on core markets, and address challenges in a highly competitive food delivery sector.
What’s Next for Just Eat Takeaway?
Strategic Refocus
By concentrating on Amsterdam, Just Eat Takeaway aims to better align its operations with its primary shareholder base and trading activity. The move could provide an opportunity for the company to streamline decision-making and reduce costs.
Industry Challenges
Despite the delisting and sale of Grubhub, Just Eat Takeaway faces broader challenges in the food delivery industry, including intense competition, rising costs, and shifting consumer behavior in a post-pandemic landscape.
Just Eat Takeaway’s decision to leave the LSE reflects its strategic priorities but raises questions about the attractiveness of the U.K. stock market for tech firms. While the company pivots to focus on Amsterdam, its challenges in the food delivery space remain substantial.
