CMA approves £6.2bn merger between and Just Eat

The UK Competition and Markets Authority (CMA) has approved the merger between hot food ordering companies Just Eat and is an international company with interests in 11 countries but does not operate in the UK. Just Eat however is a well established UK brand and between the two merging companies link customers to hundreds of restaurants and foods outlets.

In its assessment the CMA looked at whether was well placed to re-enter the UK market after its departure in 2016, and compete with Just Eat should the merger have not gone ahead. The fact that so few companies occupy this niche means there is a need for more competition in the market.

The CMA concluded that there was not a material likelihood of re-entering the market in future without merging with Just Eat.

Colin Raftery, Senior Director of Mergers at the CMA, said: “After interrogating how this deal is likely to affect the UK market, we are satisfied that there are no competition concerns.

“Millions of people in the UK use online food platforms for takeaways and, where a merger could raise competition concerns, we have a duty to rigorously investigate whether customers could lose out. In this case, we carefully considered whether could have re-entered the UK market in future, giving people more choice. It was important we investigated this properly, but after gathering additional evidence which indicates this deal will not reduce competition, it is also the right decision to now clear the merger.”