Just Eat is branching out by buying businesses in Spain, Italy, Mexico and Brazil. The popular food delivery company said on 5 February that it is buying four divisions from two food delivery start-ups.
The UK-listed firm is buying two European divisions from Berlin-based start-up Rocket Internet and two American businesses from German Foodpanda, whose biggest investor is Rocket Internet. In total, Just Eat will pay €125m (£94.7m, $140m) from cash resources.
"This transaction reflects our ambition to make strategic, value-enhancing acquisitions that consolidate our leadership of the global digital marketplace for takeaway food delivery," the company's CEO David Buttress said. "Just Eat has enhanced its market-leading positions in geographies that we understand and where our existing businesses are performing strongly."
Just Eat is buying Rocket Internet's Spanish subsidiary La Nevera Roja, the PizzaBo Hellofood venture in Italy, and Hellofood Brazil and Hellofood Mexico in their respective countries. In Brazil, it is already in a joint venture with Movile and iFood, and claims the spot as market leader.
The company's major buying spree is part of an attempt to lead the food delivery market in more and more countries across the world. According to Just Eat, the total value of the markets targeted by it in this round of purchases is £8bn.
Meanwhile, the deal is to prove valuable to Rocket Internet, a major agglomeration of e-commerce start-ups that is desperate to streamline its business. However, the disposals do not mean the company, which floated in 2015, is deserting the food delivery business. On 5 February, it was announced the company bought a 30% stake in Delivery Hero.
Oliver Samwer, Rocket Internet's chief executive and founder, said in a statement: "This sale to Just Eat represents a positive step forward for the global online takeaway industry enabling all parties to focus their resources on building bigger and better long-term businesses in their key geographies."