AMSTERDAM (Reuters) – Takeaway.com stated on Friday its 6.2 billion pound takeover of Simply Eat will proceed regardless of a last-minute setback when the UK competitors authorities stated they are going to probe the deal to create one of many world’s largest meal supply firms.
FILE PHOTO: The app for Simply Eat is displayed on a smartphone on this posed image in London, Britain, August 5, 2019. REUTERS/Toby Melville
Though Takeaway stated on Friday the investigation by Britain’s Competitors and Markets Authority (CMA) would solely delay completion of the takeover by per week, it was not clear how the intervention would possibly affect on plans to combine the 2 companies.
Relying on preliminary findings, the CMA may resolve to launch a proper investigation.
Ought to that occur, Takeaway.com would nonetheless be permitted to finish the Simply Eat takeover however may very well be prevented from integrating the 2 companies beneath an “interim enforcement order” till the investigation concluded.
The CMA had not beforehand signaled considerations over the deal, which had been within the works for months as Takeaway fought with rival suitor Prosus to purchase Simply Eat.
However the company now believes a probe could also be warranted, Takeaway disclosed late Thursday, including that the regulator can be trying into whether or not it might have re-entered the UK market with out the present deal in place.
The CMA is already investigating plans by Amazon to guide a 575 million pound funding in Deliveroo.
Takeaway stated it pulled out of the loss-making UK market in 2016 after combating stiff competitors. That yr, the enterprise misplaced 768,000 kilos ($1 million).
“Takeaway.com confirms that it didn’t have the intention to re-enter the UK market absent the transaction with Simply Eat,” the Dutch firm stated, including it might reply to the CMA’s questions and that it was assured of getting a inexperienced mild.
Takeaway.com stated on Friday that 90.2% of Simply Eat shareholders have tendered shares to its takeover supply, and that the corporate will start a squeeze-out course of to accumulate the remaining.
Reporting by Toby Sterling; Modifying by Jan Harvey and Keith Weir