Published: Fri, May 19, 2017
Money | By Armando Alvarado

Watchdog steps up probe of Just Eat and Hungryhouse merger

Watchdog steps up probe of Just Eat and Hungryhouse merger

Just Eat's planned purchase of its takeaway delivery rival Hungryhouse will be investigated by the UK's competition authority, because of worries the merger could have a negative impact on restaurants.

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

LONDON-The U.K. Competition and Markets Authority Friday referred Just Eat PLC's (JE.LN) acquisition of Hungryhouse Holdings Ltd. for in-depth investigation as Just Eat hasn't offered any solution to satisfy the regulators' concerns that the merger could lead to competition issues.

Aston Martin releasing 'Tom Brady' version of Vanquish S
Aston Martin has announced that they have begun a long-term partnership with National Football League superstar Tom Brady . In addition to driving the DB11, Brady will also have the chance to design his own Vanquish S , per ESPN .

"Following its initial investigation into the merger, the CMA has found that the companies are close competitors because of the similarity of their service and their broad geographical coverage", the CMA said.

However, initially Just Eat was given the opportunity to serve up potential ways of tackling the concerns, but the CMA said it has not done so. Just Eat first announced its plans to buy hungryhouse, its biggest United Kingdom rival, in December. This group has until 2 November 2017 to decide whether the Just Eat acquisition of Hungryhouse does indeed harm the restaurants using the services due to lack of competition.

Just Eat coughed up £200m for Hungryhouse last December, buying it from Delivery Hero.

Like this: