Just Eat enters Australia with a £455 million takeover

REUTERS/Eric Gaillard

Online takeaway ordering business Just Eat will enter the Australian and New Zealand markets by paying £455 million ($702 million) its biggest rival there - Menulog.

In a regulatory statement, Just Eat revealed that the near half a billion pound deal will be fully paid for through selling new shares in Just Eat.

Menulog's price tag is pretty hefty given that Menulog's revenue last year stood at just £13.5 million ($20.83 million), with earnings at £1.2 million ($1.85 million).

Just Eat believe the business is worth it - they believe the Australian and New Zealand markets could be worth £1.6 billion ($2.47 billion) eventually, with online takeaway penetration at just 22% at the moment.

The company, which operates in 13 countries around the world, has been expanding aggressively and Just Eat's favoured method is buying up existing businesses overseas. In February the company bought Mexican rival SinDelantal for an undisclosed sum.