European Union antitrust regulators have granted conditional approval to Dutch technology investment firm Prosus for its proposed acquisition of a significant stake in Just Eat Takeaway dot com, one of the continent’s largest online food delivery companies. The European Commission, which oversees merger control in the bloc, announced the decision on Monday following a comprehensive competition investigation.
The acquisition, first announced in late 2024, is a strategic move by Prosus to deepen its investments in the global online food delivery industry. Prosus already holds substantial interests in food delivery services across various regions, including Delivery Hero and iFood. The investment in Just Eat Takeaway strengthens its influence in the competitive European food delivery landscape, which is dominated by a few major players such as Uber Eats, Deliveroo, and Glovo.
The Commission initially flagged concerns that the deal could lead to reduced competition in several European markets. In particular, regulators were worried that the combination of Prosus’s existing assets with a stake in Just Eat Takeaway could give it undue market influence, potentially leading to higher prices or reduced service quality for consumers. Following these concerns, Prosus offered a set of commitments designed to alleviate antitrust issues.
To secure approval, Prosus has agreed to a series of remedies. These include the divestment of certain minority interests in competing food delivery companies in specific European Union countries where overlaps were identified. Additionally, the company has pledged not to seek board representation or exert any form of control over Just Eat Takeaway that could influence its strategic decisions. These safeguards are intended to preserve the operational independence of Just Eat Takeaway and ensure that Prosus does not gain a competitive advantage that could distort the market.
In its statement, the European Commission said the commitments provided by Prosus effectively address its competition concerns. “The remedies ensure that Just Eat Takeaway will remain a competitive force in the online food delivery sector and that other players will continue to have access to essential market infrastructure,” the Commission noted.
A spokesperson for Prosus welcomed the decision, saying, “We are pleased with the European Commission’s decision to approve the transaction, subject to our proposed commitments. We remain fully committed to promoting innovation and competitive markets while supporting the long term growth of the online food delivery industry.”
For Just Eat Takeaway, the deal represents an opportunity to bring in a major institutional investor at a time of mounting pressure from shareholders. The company has faced criticism over its recent financial performance and its ability to generate consistent profits in a rapidly evolving market. Analysts believe the Prosus investment could provide the stability and strategic backing needed to navigate the next phase of growth and potential restructuring.
The European food delivery sector has undergone rapid consolidation over the past few years, with traditional boundaries between delivery services, logistics companies, and technology platforms increasingly blurring. The Commission’s scrutiny of the Prosus transaction underscores its heightened vigilance in ensuring that further consolidation does not come at the expense of consumer welfare or market access.
The transaction is expected to close by the end of 2025, once all regulatory requirements have been fulfilled and the agreed remedies are implemented. Both companies will work closely with the Commission and local authorities to ensure compliance with the conditions of the approval.
This latest decision highlights the European Commission’s balancing act between fostering innovation and investment in digital markets and maintaining fair and open competition. As digital platforms continue to expand their influence across sectors, regulators are placing increasing emphasis on the long term implications of vertical and cross ownership in high growth industries like food delivery.
source: reuters.com