Prosus poised to secure European Union approval for $4.74 billion Just Eat acquisition, according to sources
Prosus, the Amsterdam-headquartered technology investor majority owned by South Africa's Naspers, has offered to incrementally sell down its 27.4% stake in Delivery Hero to address EU competition concerns. This move comes as a part of the remedies offered by Prosus to secure regulatory approval for its 4.1 billion euro bid for Just Eat Takeaway.
The European Commission is seeking market feedback on Prosus' offer for Just Eat Takeaway and will decide on the deal by August 11, 2025. The decision is contingent on Prosus' agreement to reduce its stake in Delivery Hero and give up its board seat.
The competition concerns arise from the overlap in key markets such as Austria, Bulgaria, Italy, Poland, and Spain, where Delivery Hero and Just Eat Takeaway compete. The proposed sale and relinquishment of the Delivery Hero board seat are submitted as commitments to secure regulatory approval for the Just Eat Takeaway acquisition.
This is not the first time Delivery Hero has faced antitrust issues. In 2019, the company was fined 51 million euros for similar practices. More recently, in June, Delivery Hero and its Spanish unit Glovo were fined 329 million euros by the EU antitrust watchdog for participating in a cartel. The cartel included an agreement to divide up markets among themselves and not to poach each other's employees.
The fine is equivalent to approximately $396 million USD (based on the exchange rate of 1 euro = $0.8658 USD). Prosus, in response, has declined to comment.
If approved, the deal would make Prosus the world's fourth-largest food delivery company. The top three positions in the global food delivery market are held by Meituan, DoorDash, and Uber.
It is not yet clear how much of the stake Prosus will ultimately sell, but the proposed sale is a key part of the remedies offered by Prosus to satisfy the European Commission’s competition concerns and is critical to avoiding a prolonged antitrust probe.
The fines imposed on Delivery Hero and Glovo in June are separate from the potential approval of Prosus' bid for Just Eat Takeaway. The European Commission did not comment on Prosus' deal in this paragraph.
The proposed sale of Prosus' stake in Delivery Hero, a key part of the remedies offered, is crucial to avoiding a prolonged antitrust probe in the European Commission, as technology and finance overlap in the business of both Delivery Hero and Just Eat Takeaway. This move towards banking on technology in the food delivery industry could potentially make Prosus the world's fourth-largest player, joining the ranks of Meituan, DoorDash, and Uber.
