Just Eat faces grilling as it aims to gobble up rival Hungryhouse

Takeaways firm Just Eat’s £200 million takeover of rival Hungryhouse will face a full-blown competition investigation over fears it could lead to “worse terms” for the restaurants on their books.

The Competition and Markets Authority said today it had found the pair were close competitors due to their similarity of service and broad geographical reach, whereas newer players like Deliveroo and UberEATS target different types of restaurant and smaller areas.

“The CMA is therefore concerned that the loss of competition… may result in worse terms for restaurants using either of the two companies.”

It will refer the takeover of Hungryhouse, led by Alice Mrongovius, for an in-depth, “phase 2” investigation unless Just Eat can offer measures to assuage its concerns by May 17.

Just Eat’s interim boss Paul Harrison said: “Just Eat looks forward to cooperating with the CMA and is committed to demonstrating to the CMA that the market is, and will remain, competitive following completion of the proposed transaction.”