11 May Just Eat’s acquisition of Hungryhouse faces probe
Both companies count thousands of outlets around Essex as users of their food ordering services now their super merger could be on ice.
Reports have suggested that Just Eat’s acquisition of Hungryhouse faces an in-depth merger investigation – unless the company can address competition concerns.
Both companies provide online takeaway ordering services. These give restaurants the opportunity to reach a wide pool of consumers and industry experts are now warning that their planned merger could be damaging to restaurants.
The Competition and Markets Authority has sent the case to a secondary panel who will require further information from Just Eat to further probe what predicaments the proposed merger could bring.
Just Eat has until 17 May 2017 to offer proposals to resolve the competition concerns. If it does not offer undertakings, or if the CMA is unable to accept undertakings offered, the merger will be referred for an in-depth phase 2 investigation.