Just Eat and hungryhouse £200m merger faces full competition probe

Cornelia Mascio
Mag 19, 2017

Well, the Competition Markets Authority will be the judge of that.

The CMA announced it would launch an "in-depth phase two investigation" if Just Eat could not provide evidence of how it would resolve the government department's competition concerns.

Both firms sell online ordering platforms to takeaway restaurants, which allows customers to choose from a wide variety of outlets in their area.

Earlier this month, Just Eat noted that the CMA meant to begin an in-depth investigation and said it was "committed to demonstrating to the CMA that the market is, and will remain, competitive following completion of the proposed transaction".

Last week, the CMA said it had found the companies are close competitors because of the similarity of their service and broad geographical coverage, and the tie-up may result in worse terms for restaurants using either of the two. However, it first gave Just Eat the chance to offer ways of addressing these concerns.

But the regulator said Just Eat had not offered any assurances, and so a full investigation will now go ahead, with a final decision scheduled for 2 November.

Just Eat agreed to pay £200 million to Delivery Hero for Hungryhouse and will shell out another £40 million, depending on performance. It turns out Just Eat failed to do this, and now will face further investigation of its Hungryhouse acquisition.

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