The competition watchdog is set to investigate Just Eat’s £6 billion takeover by Dutch rival Takeaway.com.
A brutal takeover battle to buy Just Eat ended earlier this month, after Just Eat shareholders accepted the bid in order to form one of the takeaway delivery sector’s biggest firms.
However, the deal will now face intense scrutiny from the competition regulator into how the move could affect the fiercely competitive delivery market.
A CMA spokesman said: “The CMA can confirm it intends to open an investigation into this transaction.”
In a stock market update, Takeaway said the regulator “reconsidered its position” over whether a merger inquiry would be warranted.
It said management believed that the CMA will conduct its investigation with a focus on whether Takeaway will be re-entering the UK market as a result.
The Dutch firm said its previous foray into the UK market was “unsuccessful” and only raised £76,000 in annual revenues before it closed in 2016.
It confirmed that it “did not have the intention to re-enter the UK market absent the transaction with Just Eat” and said it is confident it can secure clearance for the deal.