Competition inquiry casts shadow over Takeaway’s Just Eat deal

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Dutch food ordering firm Takeaway.com is pressing ahead with its 6.2 billion pound takeover of Just Eat despite a shock last-minute setback when the UK competition authorities said they will probe the deal to create one of the world’s largest meal delivery companies.

Takeaway said on Friday the investigation by Britain’s Competition and Markets Authority (CMA) would only delay completion of the takeover until the end of next week.

Depending on initial findings, the CMA could decide to launch a formal investigation into whether the deal would reduce competition in the market.

Should that happen, Takeaway.com could be prevented from further integrating the two businesses until the investigation is concluded.

The probe is the latest twist for Takeaway in its attempt to buy Just Eat, which it first announced in August, and it comes weeks after Takeaway won a months-long bidding war with rival suitor Prosus.

Takeaway disclosed the probe late on Thursday, adding that the regulator would be looking into whether it would have re-entered the UK market without the current deal in place.

Source: Reuters

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