Just Eat Takeaway.com faces ejection from FTSE 100

Just Eat Takeaway.com is facing ejection from the FTSE 100 after the index’s compiler ruled it was a Dutch rather than a British company.

FTSE Russell, which decides which firms should leave or join the blue-chip index, said it had reviewed Just Eat’s nationality and reassigned the company from the UK to the Netherlands, making it “ineligible” for inclusion.

The watchdog’s recommendations are only indicative and will not be confirmed until after market close on 1 September.

UK-based Just Eat completed a £6.2b merger with Dutch firm Takeaway.com in 2020. The group bought US-based rival Grubhub in a £5.75b deal in June, creating the world’s largest food delivery firm outside China.

FTSE Russell previously assigned Just Eat UK nationality on the basis of its intention to de-list from the Euronext Amsterdam stock exchange. However, after the Grubhub acquisition the firm was required to list on Nasdaq to minimise disruption for US shareholders. This led it to reconsider its decision to pull out of Euronext Amsterdam, leading to FTSE Russell rescinding its UK nationality.

A Just Eat spokesperson said it was taking “some time to determine the optimal listing venues for our long-term future”.

“The company will remain listed on the London Stock Exchange, Euronext Amsterdam and Nasdaq and a further announcement will be made in due course,” the spokesperson added.

Earlier this week Just Eat announced plans to create over 1,500 new UK customer service jobs in Sunderland over the next 12 months as part of £100m, five-year investment in the region.

The delivery firm processed 135 million UK orders in the first six months of 2021, a 76% increase on the same period last year. However, heavy investment in marketing, including sponsorship of UEFA Euro 2020, saw the company file a pre-tax loss of £60m.

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