(qlmbusinessnews.com via news.sky.com– Thur, 23rd April 2020) London, Uk – –
The CMA drops its investigation having previously flagged worries about the Dutch operator returning to the UK market.
Just Eat shareholders backed the offer by the Dutch online food delivery rival in January following a bidding war to create Just Eat Takeaway.com.
But the pair were forced to operate as two independent businesses when the Competition and Markets Authority (CMA) launched an investigation – to the fury of some investors who accused the watchdog of failing to grasp the market.
The CMA confirmed on Thursday that the inquiry had been completed.
Its senior director of mergers, Colin Raftery, said: “After interrogating how this deal is likely to affect the UK market, we are satisfied that there are no competition concerns.”
He added: “In this case, we carefully considered whether Takeaway.com could have re-entered the UK market in future, giving people more choice.
“It was important we investigated this properly, but after gathering additional evidence which indicates this deal will not reduce competition, it is also the right decision to now clear the merger.”
Takeaway.com left the UK in 2016 but operates across 11 countries overseas, including the Netherlands and Germany.
Uber Eats and Deliveroo are among the competitors in the UK market.
The latter received a boost last week when the CMA cleared a £400m investment in Deliveroo by Amazon after the food delivery firm warned it would go bust because of the coronavirus lockdown, which has forced many restaurants to close.
The CMA had previously outlined similar fears that Amazon could seek to enter the UK market by itself – potentially strangling the competitive landscape.
Just Eat Takeaway said in a statement that it had “taken note of the decision” by the CMA.
By James Sillars