Just Eat Merger Given CMA Green Light Despite Competition Fears
The Competition and Markets Authority (CMA) has given the go-ahead to the massive £6.2 billion merger between food delivery giants Just Eat and Takeaway.com.
Merger Clears Key Competition Hurdle
Just Eat is one of the UK’s top food delivery services. Takeaway.com operates across 11 countries, including the Netherlands, but exited the UK market back in 2016. Both platforms connect millions of customers to hundreds of takeaway outlets online.
The CMA investigated whether Takeaway.com could have returned to the UK and offered stiff competition to Just Eat, giving Brits more choice and potentially better deals. But after digging into extensive business records, the regulator concluded Takeaway.com’s return was unlikely.
CMA Confident UK Customers Won’t Lose Out
Colin Raftery, Senior Director of Mergers at the CMA, said: “After interrogating how this deal is likely to affect the UK market, we are satisfied there are no competition concerns. We carefully considered whether Takeaway.com could have re-entered the UK market to give people more choice. But the additional evidence shows this merger will not reduce competition. It’s the right decision to clear it.”
Swift Decision Amid Pandemic Challenges
Despite complications from the Covid-19 outbreak, the CMA aimed to be flexible with businesses, acknowledging potential delays in paperwork. Yet it still managed to publish its final verdict a full 26 days ahead of the legal deadline, providing certainty to all parties involved.
