The battle of the delivey sector was already great before the coronavirus, but now taking positions is almost necessary. In this fight against time, and during the pandemic, one of the largest operations in the sector has just been approved. The UK competition watchdog has just given its go-ahead to the merger between Britain’s Just Eat and Dutch company Takeaway.com. It was the last point missing for a path that began in August 2019 and that would make Just Eat one of the largest deliverys on the continent.
Although approved, the news is also accompanied by a reduction in valuations. Although the operation was initially valued at 10 billion dollarsThis has been reduced to just under 8,000 million. Likewise, this operation has also been reinforced by a capital contribution of $ 750 million from new investment funds; which enter the capital of the company with stocks and bonds of the companies; both listed on the stock exchange of their respective countries. Although the approval for the single listing, scheduled for April 27, would be the culmination of the operation.
The competition control body gives its approval precisely at one of the most difficult times for the delivey – at least in the south of the continent. While it is true that companies like Amazon have increased their activity due to the closure of street stores and confinement, the food delivery sector has seen its income fall. This is the case of companies like Glovo that, despite maintaining activity and relationships with many restaurants, announced an ERTE to 38% of their workforce at the end of March due to a 50% decrease in their service.
And it has also given its approval when the market for delivery companies begins to gather in large players. While Uber controls Uber Eats, Glovo focuses on strategic markets with little competition. And on the other side of the scale, the British Deliveroo that has received the preliminary approval for the investment that Amazon I intended to perform at the delivery company. 575 million dollars that would give entry to giant Amazon in the delivery market and that, at first, was not viewed favorably by the control of competition.
It has been, in fact, the crisis caused by the coronavirus that has harmed the accounts of the technology that has accelerated a process that has been considered stagnant for months. According to the agency, “as a developing company, Deliveroo is particularly dependent on continued investment to support its operations.” Or what is the same as saying that, given the circumstances, they have been in the position of changing their opinion regarding the entry of Amazon into Deliveroo’s capital at the risk that the company may fall along the way.
In any case, if there were doubts about Amazon’s investment, in the case of Just Eat there was no room. “Millions of people in the UK use food platforms, and where a merger could raise competition concerns, we have a duty to rigorously investigate whether customers could lose. In this case, we carefully consider whether Takeaway.com might have re-entered the UK market in the future, giving people more options. It was important that we properly investigate this, but after gathering additional evidence that this agreement will not reduce competition, it is also the right decision to now clear the merger, “they argue.
This merger is the latest operation in a long list of operations that have led the British to take the checkbook out of her country. A total of 28 purchases Among which are the startup SinDelantal in Mexico, becoming the market leader and the highly regarded acquisition of one of the first startups – and million-dollar sales – in Spain: La Nevera Roja. At that time owned by Rocket Internet and giving a boost to its activity just before the arrival of the great internet giants.
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