CMA unconditionally clears Just Eat's acquisition of Hungryhouse

The Competition and Markets Authority has unconditionally cleared Just Eat’s acquisition of Hungryhouse, saying the deal does not raise any competition concerns.

The competition watchdog found that Hungryhouse presently provides limited competition to Just Eat because it is much smaller in size and offers too few unique restaurants. This makes it increasingly difficult for Hungryhouse to attract and retain consumers. In addition, it said that the industry is evolving rapidly following the entry of platforms such as Deliveroo, UberEATS and Amazon, which also manage or facilitate delivery services on behalf of restaurants.

“These companies generally present a greater competitive challenge to Just Eat than Hungryhouse, and this is likely to grow as they expand,” it said.

“In reaching its final conclusion, the group also took account of the fact that some customers may order directly from takeaway restaurants, either by telephone, through their websites or by walking in.”

Just Eat chairman Andrew Griffith 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.”

Just Eat expects the deal to complete on 31 January 2018.