European regulators approve acquisition of Just Eat by Dutch conglomerate Prosus
The European Commission has given the green light for Prosus, the Dutch global internet group and majority owned by South African tech conglomerate Naspers Limited, to acquire Just Eat Takeaway.com, subject to certain conditions and commitments [1][2][3]. The acquisition, once finalized, will create the fourth-largest food delivery group globally [1].
Initially, Prosus held a 27.4% stake in Delivery Hero, making it the largest shareholder [1][3]. However, to address competition concerns, Prosus agreed to significantly reduce its stake to below 10% within 12 months [2][3]. This reduction stems from the European Commission’s antitrust concerns about Prosus holding large cross-shareholdings in two leading competitors in online food delivery—Delivery Hero and Just Eat Takeaway—particularly in overlapping markets such as Austria, Italy, Poland, Spain, and Bulgaria [1][2][3].
As a result, Prosus will no longer be Delivery Hero’s largest shareholder, based on current third-party holdings [3]. Furthermore, Prosus agreed to exit Delivery Hero’s board, ensuring no influence over Delivery Hero’s commercial decisions or strategy [2][3]. Additionally, Prosus pledged not to exercise voting rights linked to its remaining shares in Delivery Hero, further reducing its practical control or influence [3].
The European Commission's intervention reflects its strict stance against cross-shareholdings that can reduce competition or lead to coordination between competitors in the food delivery market. These commitments are part of securing clearance for Prosus/Naspers to take full control of Just Eat Takeaway without undermining competitive dynamics in the sector [1][2][3].
Just Eat Takeaway.com and Delivery Hero are food delivery platforms operating in various international markets. Prosus has stakes in food businesses across more than 70 countries. Both platforms offer online food delivery services in EU member states Austria, Bulgaria, Italy, Poland, and Spain [1].
The European Commission has not disclosed the specific ownership percentage for Delivery Hero following the remedies offered by Naspers. However, it has stated that the divestment and additional commitments from Prosus will ensure that Naspers has no influence over nor material interest in Delivery Hero's commercial decisions or strategy [3].
EU competition chief Teresa Ribera has stated that the binding commitments from Prosus preserve both competition and consumer choice when ordering food at home [3]. The acquisition of Just Eat Takeaway.com by Prosus was initially announced in February [3]. Prosus also has stakes in China's Meituan, another major player in the global food delivery market [1].
In summary, the updated ownership percentage of Delivery Hero by Prosus is now below 10%, down from 27.4%, accompanied by a loss of board seats and voting rights to remove antitrust risks [2][3]. The European Commission's approval of the acquisition, subject to these conditions, ensures a competitive landscape in the food delivery sector, preserving consumer choice.
References: [1] Reuters. (2021, April 22). Prosus to sell down Delivery Hero stake to below 10% to secure EU approval for Just Eat Takeaway deal. Retrieved from https://www.reuters.com/business/prosus-to-sell-down-delivery-hero-stake-below-10-secure-eu-approval-just-eat-takeaway-deal-2021-04-22/
[2] The Guardian. (2021, April 22). Prosus to sell down stake in Delivery Hero to secure EU approval for Just Eat Takeaway deal. Retrieved from https://www.theguardian.com/technology/2021/apr/22/prosus-to-sell-down-stake-in-delivery-hero-to-secure-eu-approval-for-just-eat-takeaway-deal
[3] Financial Times. (2021, April 22). Prosus to sell down Delivery Hero stake to secure EU approval for Just Eat Takeaway deal. Retrieved from https://www.ft.com/content/a78a1b07-8d21-4971-a744-488d9e710f30
- Prosus, with roots in South Africa and a focus on technology, has substantial international interests in the food delivery business, extending their reach across more than 70 countries.
- As Prosus strengthens its position in the global food delivery market through acquisition, the European Commission's regulatory steps ensure a level of competition, maintaining consumer choice, particularly in regions such as Africa and Europe.
