Exclusive: EU antitrust regulators set to clear Prosus, Just Eat Takeaway deal, sources say

EU antitrust regulators are reportedly poised to approve Dutch technology investor Prosus' 4.1-billion-euro acquisition of Just Eat Takeaway. This clearance is contingent upon Prosus incrementally divesting its 27.4% stake in Delivery Hero and relinquishing its board seat, addressing competition concerns. The expected approval removes a significant regulatory hurdle for this major consolidation in the European food delivery market.

Analysis

The anticipated conditional clearance from EU antitrust regulators for Prosus's €4.1 billion acquisition involving Just Eat Takeaway marks a critical step forward for the transaction. Approval is contingent upon significant concessions from Prosus, specifically the incremental divestment of its 27.4% stake in competitor Delivery Hero and the relinquishment of its associated board seat. This remedy directly addresses the EU's competition concerns by preventing Prosus from holding influential positions in two major players within the European food delivery market. The resolution of this regulatory hurdle removes a major source of uncertainty for the deal and signals a clear, albeit strict, path for future M&A within the sector, where divestitures are a viable tool to secure approval for consolidating moves.

Key Decisions for Investors

• For investors in Prosus and Just Eat Takeaway, the expected regulatory green light is a significant positive development, de-risking the transaction and shifting focus towards deal execution and integration.
• Investors in Delivery Hero should anticipate potential share price pressure due to the overhang from Prosus's mandated 27.4% stake sale, making the timing and structure of this divestment a critical factor to monitor.
• This outcome serves as a key precedent for M&A in the European tech sector, indicating that regulators are amenable to structural remedies like asset sales to approve large-scale consolidation, a crucial consideration for evaluating future deal risks.