In December 2016, Just Eat announced its intent to acquire Hungryhouse for £200 million . But on Tuesday, the Competition and Markets Authority (CMA) announced that the merger of the two food delivery firms is being investigated over fears that it could harm competition, following an “initial investigation.”
Founded in 2001, Just Eat went public in 2014 and now operates in 13 markets with over 64,000 restaurants and 14 million customers worldwide, the company says .
“Following its initial investigation into the merger, the Competition and Markets Authority (CMA) has found that the companies are close competitors because of the similarity of their service and their broad geographical coverage,” the CMA said in a statement .
It believes that newer businesses in the market like UberEats and Deliveroo aren’t necessarily providing much “direct competition,” because “these tend to target different types of restaurant (primarily dine-in restaurants without their own delivery services). These recent entrants also offer less extensive geographic coverage than Just Eat and Hungryhouse.”
In short, the CMA says, it is […]