Just Eat’s £200m takeover of HungryHouse to complete in January

Industry
16/11/2017 - 10:36
Online food delivery company Just Eat has said that it expects its acquisition of market rival Hungryhouse to be complete by 31 January 2018 after the deal was given final clearance from the competition watchdog.

The Competition and Markets Authority gave the merger unconditional clearance after deciding that Hungryhouse only provided "limited competition" to its soon-to-be new owner.

Andrew Griffith, interim chairman of Just Eat, said: ‘’The combination with Hungryhouse will enable us to bring benefits to even more independent restaurants, while improving the service and breadth of choice that we offer consumers.

“We are therefore pleased with the CMA’s decision and look forward to bringing Hungryhouse into the Just Eat family. I would like to thank all the Just Eat team for their hard work in concluding the process with the CMA over the past year.”

In provisionally clearing the £200 million deal last month, the CMA decided that a combination of Hungryhouse’s lack of restaurant choice and the competition provided by Deliveroo, UberEATS and Amazon, made a monopoly of the market by Just Eat unlikely.

"We found that Hungryhouse was a weak competitor to Just Eat and so competition is unlikely to be substantially reduced by this merger, especially given the entry and rapid expansion of innovative suppliers in this sector," said Martin Cave, inquiry Chair.

Founded in 2003, Hungryhouse, which failed to get an investment when it was pitched on TV show Dragon’s Den in 2007, was bought by German-based company, Delivery Hero, in 2013.

Headquartered in London, Just Eat has a database of 19 million users and currently partners with 75,400 restaurants.

The company recently raised its revenue expectations for the year to £515 million after reporting strong financial growth over the last 12 months.

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