European Union Approves Prosus' €4.1 Billion Acquisition of Just Eat Takeaway.com with Conditions

Just Eat Takeaway.com's €4.1 billion sale to Prosus has been approved by the European Union with conditions. The acquisition, announced in late February, was subject to regulatory approval. The European Commission has approved the sale, allowing Prosus to proceed with the acquisition.

The European Union has approved Prosus' €4.1 billion acquisition of Just Eat Takeaway.com (JET), subject to conditions aimed at preserving competition in the global food delivery market. The acquisition, announced in late February, was subject to regulatory approval, and the European Commission has now given its conditional nod, allowing Prosus to proceed with the deal.

Under the terms of the approval, Prosus has agreed to significantly reduce its stake in Delivery Hero, another major player in the food delivery sector, to below 10% and cede board control. The EU's decision was influenced by Prosus' pledge to divest its stake in Delivery Hero, which was seen as a way to allay competition concerns [1].

The acquisition would make Prosus the fourth-largest food delivery group globally, behind Uber Technologies Inc., DoorDash Inc., and China’s Meituan. Prosus aims to integrate JET's 18-country network with AI-optimized logistics from iFood (Brazil) and Swiggy (India), targeting €10 billion in revenue by 2030 [1].

The deal aligns with market consolidation trends driven by AI efficiency and regulatory pragmatism. However, it also comes with regulatory risks, including the EU's strict AI/data governance laws. Investors must weigh these trade-offs against the long-term growth potential in a market projected to reach $824 billion by 2033 [1].

The acquisition is part of a broader trend of consolidation in the food delivery industry, driven by strategic acquisitions and AI-driven logistics. Prosus' ability to replicate these efficiencies across its global platforms will determine its competitive edge. The integration of AI into logistics is a critical differentiator, as seen in other companies' use of data-centric operations to optimize delivery times and customer retention [1].

The EU's approval of the deal sends a clear warning to the industry, emphasizing that any anticompetitive behavior will not be tolerated. This approval comes amidst a wave of consolidation in the food delivery industry, which has seen intense price competition since the pandemic [2].

References:
[1] https://www.ainvest.com/news/prosus-eu-approved-eat-takeaway-deal-strategic-play-global-food-delivery-dominance-2508/
[2] https://www.ainvest.com/news/eu-approves-prosus-4-8-billion-eat-takeover-conditions-2508/