Just Eat's £200 million acquisition of Hungryhouse has provisionally been approved

Cornelia Mascio
Ottobre 12, 2017

The merger of online food takeaway delivery rivals Just Eat and Hungryhouse is on course to be cleared following a provisional ruling by the competition regulator.

The Competition and Markets Authority began a deep "phase 2" probe into the merger after in May saying that its initial investigation found the companies were "close competitors because of the similarity of their service and their broad geographical coverage". In comparison, Hungryhouse gives customers the choice from more unique brands.

Hungryhouse was seen to presently provide "limited competition" to Just Eat as it was felt to be "much smaller in size and offers too few unique restaurants, making it increasingly hard for Hungryhouse to attract and retain consumers".

Furthermore, it found that the industry is evolving rapidly following the entry of platforms, such as Deliveroo, UberEATS and Amazon, which also manage or facilitate delivery services on behalf of restaurants.

Just Eat would take popular preference over Hungryhouse, offering more high street chain restaurants to order takeaways from.

We found that Hungryhouse was a weak competitor to Just Eat and so competition is unlikely to be substantially reduced by this merger, especially given the entry and rapid expansion of innovative suppliers in this sector.

Just Eat said it welcomed the announcement and said in a statement it looked forward to "continuing to deploy our technology and expertise to help more independent restaurants develop and grow their businesses".

The online takeaway company expects to hear a final decision from the CMA by November.

It will announce its final decision in the following weeks.

Competition is more likely to come from companies such as Deliveroo or UberEATS, which are both a similar size brand compared with Just Eat, offering numerous same restaurants.

Just Eat agreed to pay £200 million to Delivery Hero for Hungryhouse and will shell out another £40 million, depending on performance.

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