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Just Eat gets unconditional approval for Hungryhouse merger

Published: 09:55 16 Nov 2017 GMT

picture of Just Eat
Competiton is growing from Deliveroo and Uber

Takeway app group Just Eat plc (LON:JE.) has had its takeover of rival Hungryhouse unconditionally passed by the competition authorities.

A go-ahead was provisionally granted by the CMA in October but with this full approval Just East expects to formally complete the deal on January 31.

READ: Just Eat ups sales target again as Canada booms

Andrew Griffith, interim chairman, said  the addition of Hungryhouse would improve the service and breadth of choice that it can offer consumers.

In the provisional ruling, competition watchdog the CMA said competition from Deliveroo and UberEATS presented a “greater competitive challenge” to Just Eat than Hungryhouse, which it called a “weak competitor”.

Deliveroo, for example, expects to increase its share of the food delivery market from 5-10 % to between 10-20% by the end of this year.

 “We found that Hungryhouse was a weak competitor to Just Eat and so competition is unlikely to be substantially reduced by this merger.”

READ: Just Eat’s £200mln takeover of Hungryhouse gets provisional green light from regulators

Just Eat will pay £200mln to Hungryhouse owner Delivery Hero, with a further £40mln dependent on performance targets.

Hungryhouse is one of Just Eat’s main competitors in the UK but has been losing money.

Just Eat expects the acquisition to be earnings per share-accretive in the first full year of ownership.

Shares in Just Eat rose by 0.9% to 810p.

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