Just Eat shares have tumbled 2% after the U.K.’s Competition and Markets Authority informed billionaireTakeaway.com that an 11th hour investigation into the recently announced $7 billion merger is warranted.
Trading at a day’s high of 865.20, shares of Just Eat sank to their lowest point of 848.00 before recovering to 865.80, according to Reuters.Earlier in January Takeaway.com won the global battle for Britain’s Just Eat to create a meal-delivery company big enough to compete against GrubHub, Delivery Hero and Uber Eats.
However, Takeaway.com’s merger with Just Eat might yet sour. The Dutch firm claims that the acquisition was necessary because its UK business, before being shuttered, “was unable to successfully compete with other food delivery websites.”Last month the U.K.’s competition regulator launched an investigation into Amazon’s proposed stake in Deliveroo. The CMA is concerned that the newly formed consolidated firms will prevent smaller delivery companies from entering the burgeoning industry.