Prosus's Strategic Concessions in the EU Food Delivery Sector: A Blueprint for Market Dominance and Long-Term Value Creation

The European Union's antitrust regulators have long been a thorn in the side of global tech giants, and Prosus's proposed €4.1 billion acquisition of Just Eat Takeaway (JET) is no exception. Yet, the Dutch investment giant's strategic concessions—selling down its stake in Delivery Hero and relinquishing board control—go beyond mere regulatory compliance. These moves are a calculated masterstroke to unlock long-term value, reshape competitive dynamics, and position JET as Europe's answer to Meituan and DoorDash.

The Regulatory Hurdle: A Test of Strategic Patience

The European Commission's scrutiny of Prosus's cross-shareholding in Delivery Hero (DHER.DE) and JET is emblematic of its zero-tolerance stance on anti-competitive behavior. In key markets like Italy and Poland, where Delivery Hero and JET directly compete, the risk of market concentration is acute. Prosus's solution? A structural remedy: reducing its stake in Delivery Hero to below 10% and exiting the board. This dilution of influence removes a critical antitrust red flag while preserving Prosus's exposure to the broader food delivery ecosystem.

The Commission's third-party feedback process, which closed on July 31, 2025, has yet to yield a decision, but the proposed concessions appear robust. By August 11, 2025, regulators will either greenlight the deal or demand further adjustments. Prosus has already extended the JET acquisition's tender deadline to October 1, 2025, signaling confidence in the outcome.

Strategic Concessions: The Cost of Entry, Not a Compromise

Critics may argue that Prosus is sacrificing short-term equity value by divesting Delivery Hero shares. However, this is a misreading of the calculus. By exiting Delivery Hero, Prosus eliminates a drag on JET's growth potential. The reduced stake also aligns with the EU's broader trend of cracking down on cross-shareholding cartels—exemplified by the €329 million fines imposed on Delivery Hero and Glovo in 2024.

The real value lies in the post-merger synergies. Prosus's AI-driven logistics model, honed in its iFood operations in Brazil, promises to slash delivery times by 30%, reduce costs, and boost order frequency. JET's 356,000 restaurant partners and 879 million orders in 2024 provide a fertile ground for AI-native optimization. The integration of JET into Prosus's ecosystem—already including Delivery Hero (pre-divestiture) and Swiggy in India—creates a global food delivery network capable of rivaling DoorDash and Uber.

Competitive Dynamics: A Fragmented Market Awaits Consolidation

The EU food delivery sector is a fragmented battleground. Over 400 players operate in the region, with JET and Delivery Hero dominating in 18 countries. Yet, despite their scale, both companies have struggled with profitability. JET's €200 million loss reduction in 2024 underscores the sector's challenges. Prosus's acquisition, if approved, would create a combined entity with €10 billion in annual revenue and the scale to absorb AI-driven cost savings.

The regulatory environment, however, remains a wild card. The EU's 8% annual growth projection for the sector through 2030 hinges on consolidation. Prosus's ability to navigate antitrust scrutiny while maintaining its AI edge will determine whether it becomes a “European tech champion” or a cautionary tale of regulatory overreach.

Investment Implications: A Calculated Bet with High Rewards

For investors, the JET acquisition represents a high-stakes, high-reward opportunity. If the EU approves the deal, Prosus could unlock €1 billion in annual cost savings and position JET as the fourth-largest global food delivery company. The integration of AI-powered logistics and cross-platform services (e.g., ride-hailing partnerships) further amplifies upside potential.

However, risks persist. A delayed approval or additional concessions could dilute synergies. Shareholders must also weigh the trade-off between exiting Delivery Hero's shares and JET's long-term growth prospects. Given Prosus's financial discipline—$443 million in adjusted EBIT in 2025 and a $50 billion shareholder return program—the company is well-positioned to absorb short-term costs.

Conclusion: The Path to Dominance

Prosus's strategic concessions are not a capitulation to regulators but a shrewd repositioning for dominance. By aligning with the EU's antitrust priorities, the company is not only securing regulatory approval but also setting a precedent for how tech firms can navigate complex markets. The integration of JET into an AI-native ecosystem—coupled with a disciplined exit from Meituan and a focus on predictable markets—positions Prosus to capitalize on the sector's 8% annual growth.

For investors, the key takeaway is clear: this is a calculated, data-driven bet on the future of food delivery. If the EU's August 11 decision is favorable, the rewards could be transformative. But patience and a long-term lens will be essential to unlocking the full potential of this strategic move.