European Union antitrust authorities are expected to give the green light to Prosus’ €4.1 billion ($4.74 billion) acquisition of Just Eat Takeaway, but only under specific conditions designed to ease competition concerns. According to sources cited by Reuters, regulators are close to approving the deal after Prosus offered a set of remedies aimed at maintaining fair competition in the food delivery sector.
To address the EU’s concerns, Prosus has agreed to gradually reduce its 27.4% stake in Delivery Hero, a major competitor in the European market. The Amsterdam-based tech investment company will also give up its board seat at Delivery Hero, effectively limiting its influence over strategic decisions at the rival firm. These concessions are seen as necessary steps to prevent the creation of a dominant position that could hurt market dynamics and consumer choice.
The acquisition, if approved, would significantly strengthen Prosus’ foothold in Europe’s food delivery landscape. By absorbing Just Eat Takeaway, the company would expand its control across multiple countries, consolidating a wide customer base and potentially improving its scale efficiencies. However, this move triggered scrutiny from regulators worried that such a merger could undermine competition, particularly in cities where Just Eat, Delivery Hero, and other rivals overlap.
EU regulators have been increasingly proactive in recent years in scrutinising deals in the tech and digital sectors, especially those involving potential conflicts of interest or cross-holdings in competing firms. In this case, Prosus’ dual involvement in Just Eat and Delivery Hero raised red flags about a possible weakening of competitive tension in the market.
The remedies now under consideration appear to have addressed those fears, paving the way for an official decision in the coming weeks. If finalised, the approval will allow Prosus to move forward with its European expansion, but under clear boundaries that regulators hope will keep competition fair and consumers protected.
This deal is part of a broader trend of consolidation in the food delivery space, where firms are seeking scale and efficiency in a high-cost, low-margin environment. For Prosus, securing Just Eat Takeaway could be a major win, but only if it can navigate the regulatory landscape without further concessions that weaken the strategic value of the acquisition.