Boards of London-based Just Eat ( JSTTY ) and Dutch company Takeaway.com confirmed in statements Saturday that they are "in discussions about a possible" merger deal.
"Any transaction may be structured as an offer for Just Eat by Takeaway.com, but there can be no assurance that any offer will be made, nor whether the terms of such an offer should be made," Takeaway's statement sounds.
Takeaway.com has until August 24 to announce whether it has "a firm intention" to bid on Just Eat, the companies said.
A joint company can give a big boost to companies' position in the crowded food delivery sector, which is dominated by companies like GrubHub ( GRUB ) and Uber Eats ( UBER ) . Tech behemoth Amazon ( AMZN ) also signaled that it wants to play a big role for the European market, and it poured millions into Deliveroo, one of the UK's largest delivery apps. Earlier this month, British regulators put further transactions on hold while considering whether Amazon's investments constitute a takeover.