Exclusive-Prosus set to win EU nod for $4.74 billion Just Eat deal, sources say

Prosus is poised to secure EU antitrust approval for its €4.1 billion ($4.7 billion) acquisition of Just Eat Takeaway, contingent on its agreement to divest its 27.4% stake in rival Delivery Hero and relinquish its board seat. This strategic move, awaiting the European Commission's final decision by August 11, would position Prosus as the world's fourth-largest food delivery company, significantly reshaping the global meal delivery landscape.

Analysis

Prosus is poised to secure European Union antitrust approval for its €4.1 billion acquisition of Just Eat Takeaway, a development contingent on its commitment to divest its entire 27.4% stake in competitor Delivery Hero and vacate its board seat. This concession directly addresses regulatory concerns over market concentration in Austria, Bulgaria, Italy, Poland, and Spain where Just Eat Takeaway and Delivery Hero compete. The deal, with a final decision expected from the European Commission by August 11, would strategically reposition Prosus as the world's fourth-largest food delivery company, leveraging its stated expertise in artificial intelligence to enhance Just Eat Takeaway's platform. Conversely, this development creates a significant headwind for Delivery Hero, which now faces the prospect of a major share overhang from the forced divestment, compounded by a recent €329 million EU fine for anti-competitive cartel activities.

Key Decisions for Investors

• The impending regulatory clearance for the Prosus (PROSF) and Just Eat Takeaway (TKWY) merger significantly de-risks the transaction, presenting a positive catalyst for both stocks as the deal moves toward finalization.
• Investors in Delivery Hero (DHER) should exercise caution due to the dual negative catalysts of a large, forced stake sale by Prosus creating potential selling pressure, and the financial impact of the recent €329 million antitrust fine.
• The transaction highlights accelerating consolidation in the food delivery sector; portfolio managers should assess how this newly-formed entity will impact the competitive landscape for market leaders like DoorDash (DASH) and Uber (UBER).