Just Eat and Takeaway.com’s landmark £6 billion merger had been approved by the UK’s competition authority, just days after granting approval to rival Deliveroo and Amazon’s tie-up.
The Competition and Markets Authority (CMA) has cleared the two companies’ merger, allowing them to move forward with operations as a newly combined entity.
In January, Just Eat’s shareholders accepted Takeaway.com’s £6 billion bid over that of rival Prosus, the international dealmaking unit of Naspers.
However, the CMA made a last-minute intervention preventing the pair from combining their operation while it carried out a thorough investigation.
Just Eat Takeaway received the greenlight from the CMA as it raised €700 million in new financing, which it plans to use to pay down debt and provide flexibility for any upcoming strategic opportunities.
This comes just days after the pairs’ largest rival Deliveroo was given provisional approval to move forward with its £400 million tie-up with Amazon.
The CMA said last week that due to the coronavirus lockdown Deliveroo had suffered heavily after several major restaurant chains, including Nandos, KFC and Pret a Manger, closed their doors to all customers.
Officials said they had previously been concerned that the £400 million investment round could damage competition in the UK as it emerged that Amazon was the majority investor.
However, on Friday afternoon they said the “imminent exit of Deliveroo would be worse for competition than allowing the Amazon investment to proceed”.
To mitigate the loss of business from some of its most popular restaurants, Deliveroo has begun delivering grocery orders for supermarkets and convenience stores including Morrisons and McColl’s, as demand for online grocery delivery skyrockets.