By Edith Hancock


Amsterdam-listed investment group Prosus and Just Eat Takeaway.com flagged their 4.1 billion euro ($4.73 billion) merger to the European Union's competition regulator on Friday, triggering an investigation into the deal.

"We are excited to announce that we have formally notified the proposed acquisition of Just Eat Takeaway to the European Commission," a Prosus spokesperson said on Monday, adding the group is working with the commission and is confident it can get the deal approved.

Prosus said its bid to take over Just Eat would enable it to integrate artificial intelligence into the food delivery group's operations, boosting efficiency and strengthening its ability to compete with other players like Uber Eats.

Prosus, which has a minority stake in rival Delivery Hero, announced its plan to buy Just Eat in February; a deal that is set to create the world's fourth-largest player in food delivery by gross transaction value. Chief Executive Fabricio Bloisi said at the time it wanted to turn Just Eat into a European champion.

Mergers that cross certain thresholds need to be vetted and approved by the commission to go ahead. The regulator can later launch an in-depth investigation if it is concerned a deal would enable a company to abuse its dominance.

Companies can also offer concessions--such as divesting parts of their combined business or making investment commitments--to address the watchdog's concerns.

Food delivery groups got a boost in demand from the Covid-19 pandemic as restaurants shuttered, but companies in the sector struggle with intense competition and a decline in consumer spending amid higher prices.

The market is also one European competition regulators have their eyes on. German group Delivery Hero was fined earlier this year by the commission's antitrust regulator after it found that it had illegally participated in cartel behavior Spain's Glovo--such as agreeing not to poach staff and sharing commercially sensitive information--before eventually buying a controlling stake in the company. "These practices were facilitated through an anticompetitive use of Delivery Hero's minority stake in Glovo," Teresa Ribera, the EU's commissioner for competition, said at the time.


Write to Edith Hancock at edith.hancock@wsj.com


(END) Dow Jones Newswires

06-23-25 0451ET