Online takeaway ordering firm Just Eat is to face a full-blown investigation into its takeover of rival Hungryhouse amid concerns the deal could curb competition.
The Competition and Markets Authority said its initial probe into the acquisition – worth up to $260 USD million – found the two firms were close competitors because of the service they offer and their reach across the UK.
On Friday the watchdog said that the merger could lead to worse terms for restaurants using either company, adding that the deal will now undergo an in-depth merger investigation after Just Eat failed to address its concerns.
The group announced its takeover of Hungryhouse last December.
The CMA said: “Both companies provide online takeaway ordering services. These give restaurants the opportunity to reach a wide pool of people, as well as offer customers the convenience of choosing from a large range of takeaway providers in one place.
Full Content: Financial Times
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