📉 Just Eat Takeaway’s London Exit
Just Eat Takeaway, the Anglo-Dutch food delivery firm, has announced its decision to delist from the London Stock Exchange (LSE). The company cited "low liquidity and trading volumes" as the primary reasons. This strategic shift makes Amsterdam the sole trading venue for its shares. The delisting will become effective at 8 a.m. London time on Dec. 27, with Dec. 24 being the last trading day. Following the announcement, Just Eat Takeaway's shares dipped by 1.5%.
🌍 Why Amsterdam?
The decision to leave London stems from a broader review of listing venues. Just Eat Takeaway aims to reduce the regulatory complexity, administrative burden, and costs associated with dual listings. The company believes that focusing on Amsterdam, its original listing venue, aligns better with its operational strategy. Amsterdam has become increasingly attractive for tech firms, offering streamlined processes and investor interest.
💸 Financial Challenges
This move comes on the heels of Just Eat Takeaway selling its GrubHub division for $650M to U.S.-based Wonder. This sale marks a steep loss compared to the $7.3B Just Eat paid for GrubHub in 2021. Analysts suggest the company is focusing on core markets and restructuring to mitigate losses. The delisting underscores its strategy to cut costs and prioritize efficiency.
🇬🇧 Implications for the UK Market
Just Eat Takeaway’s exit is a blow to the U.K.’s ambitions to attract tech firms to the London market. It reflects a broader concern about the competitiveness of the LSE for high-growth companies. Experts argue that regulatory reforms may be needed to prevent further exits. This departure sends a signal about the challenges the U.K. faces in retaining global companies on its exchanges.
How will London’s stock market compete globally?
