Just Eat's takeover bid to undergo regulatory probe

Company News | Business | Markets | Technology 5/19/2017, 9:33 AM
Just Eat's takeover bid to undergo regulatory probe

The United Kingdom's Competition and Markets Authority (CMA) said on Friday it is referring a proposed £200 million transaction in the online food order sector for an in-depth investigation. Regulators opted for the move after Just Eat Plc failed to come up with remedies over the concerns related to its deal to acquire Hungryhouse, its largest domestic rival. The case qualifies for a phase two probe, the statement adds and notes the merger may worsen the terms for restaurants that use the operators' services.

The deadline for the decision is November 2. "Both companies provide online takeaway ordering services. These give restaurants the opportunity to reach a wide pool of people, as well as offer customers the convenience of choosing from a large range of takeaway providers in one place," CMA said and underscored the two firms are close competitors. 

Just Eat, a Danish company that moved to London, also battles for market share with Uber, Deliveroo and Amazon, but the rivals differ by operating deliveries and not just orders, and they offer less extensive geographic coverage. Just Eat slipped 0.25% to 590.5 pence in early trade. The enterprise gained 40.22% in the past year, compared to a 16.67% rise in benchmark Stoxx Europe 600.

TeleTrader Newsroom / IT

Share:

JUST EAT ORD ...-0.36%

687.50
Chart for: JUST EAT PLC ORD 1P

STOXX Europe ...+0.18%

383.92
Chart for: STOXX Europe 600, EUR (Price)