(Alliance News) - Takeaway.com and Just Eat have delayed their merger, Takeaway.com said Friday, as the UK competition watchdog looks into the deal.
Late on Thursday, the Dutch takeaway platform said the Competition & Markets Authority was reconsidering its position on the merger.
The CMA on Friday confirmed it will be looking into whether the combination would lessen competition in the UK takeaway platform sector. The invitation for comment closes on February 6.
The two had originally envisaged trading beginning in London as a new company on Monday next week, and the name was to be changed to Just Eat Takeaway.com NV Friday this week.
However, due to the CMA move, the timetable has been delayed by a week, and the new company will be renamed on January 31 and start trading February 3.
Takeaway.com currently has acceptances from 90% of Just Eat shareholders, but will be able to compulsorily buy those shares not accepted under UK corporate law on the same terms as those which have accepted.
Takeaway.com won the bidding war for Just Eat earlier in January, in a deal worth 916 pence per Just Eat share. South African media and internet investor Prosus NV had offered 800p.
Just Eat shares were down 2.1% at 862.40p early Friday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.8% at 7,565.22
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Hang Seng: closed up 0.2% at 27,949.64
Nikkei 225: closed up 0.1% at 23,827.18
DJIA: closed down 26.18 points, 0.1%, at 29,160.09
S&P 500: closed up 0.1% at 3,325.54
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GBP: up at USD1.3127 (USD1.3107)
EUR: firm at USD1.1049 (USD1.1036)
Gold: down at USD1,559.40 per ounce (USD1,563.00)
Oil (Brent): up at USD62.36 a barrel (USD61.40)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
China - Chinese New Year Eve. Shanghai market closed; HK open.
Switzerland - World Economic Forum concludes in Davos. UK Chancellor Sajid Javid speaks.
0930 GMT UK CIPS-Markit flash manufacturing and services PMI
0930 CET Germany flash PMI
1000 CET EU eurozone flash PMI
0945 EST US flash manufacturing and services PMI
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The presidents of the European Commission and European Council are due to sign the Withdrawal Agreement as Britain's divorce from Brussels is finalised in the coming days. The Queen gave royal assent to the legislation for Boris Johnson's Brexit deal, paving the way for the UK to leave the EU with an agreement at the end of January – almost four years after 2016's Leave vote. Following MPs and peers voting to approve the terms of the Withdrawal Agreement and Queen Elizabeth's rubber stamping, commission president Ursula von der Leyen and council president Charles Michel are on Friday expected to sign-off on the document that will allow Britain to leave the EU next week. The agreement still needs to be approved by the European Parliament before Brexit day, with a vote expected on January 29.
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Bank of Japan meeting minutes showed that policy makers thought it was appropriate to "persistently continue" with its "powerful" monetary easing stance. At the last meeting of the BoJ Policy Board, in December, the central bank decided to maintain the short-term interest rate at minus 0.1% and the long-term interest rates at around 0%. Aggressive monetary easing measures were introduced in April 2013 as the bank aimed to reach its 2% inflation target within two years. Many members at December's meeting said it was necessary to maintain highly accommodative financial conditions, while watching developments in economic activity and prices.
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BROKER RATING CHANGES
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CITIGROUP CUTS SCHRODERS TO 'SELL' ('NEUTRAL')
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CITIGROUP INITIATES STANDARD LIFE ABERDEEN WITH 'NEUTRAL'
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JEFFERIES RAISES UNILEVER TO 'BUY' (HOLD) - PRICE TARGET 5000 (4450) PENCE
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COMPANIES - FTSE 100
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Medical equipment manufacturing company Smith & Nephew said it has purchased California-based Tusker Medical, citing a strategy to invest in innovative technologies that address unmet clinical needs. Tusker Medical is a developer of an in-office solution for tympanostomy tubes, which enables placement of ear tubes without general anaesthesia for patients six months and older. The transaction was financed from existing cash and debt facilities, S&N said. The commercial terms have not been disclosed.
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COMPANIES - FTSE 250
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Marston's, a brewer and pub and hotel operator, said it has delivered a "creditable" performance the 16 week period to January 18 despite a "challenging" market. Managed and franchise like-for-like sales growth at its pubs increased 1.0% during the period, Marston's said, driven by drinks sales. Food sales, meanwhile, were weak, the company noted. Trading of pubs over the Christmas fortnight was strong, with like-for-like sales growth of 4.5%. Turning to Marston's beer operations, the company said volumes during the period were slightly behind last year, reflecting weaker lager sales. Excluding lager, volumes were in line with last year. "Our balanced pub portfolio enables us to perform well in the context of current market dynamics and our market-leading Beer Company has continued to increase market share in both the on and the off trade in the period," said Marston's Chief Executive Ralph Findlay.
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Virgin Money UK said Chair Jim Pettigrew plans to retire by September 2021 as part of the board succession plan and good corporate governance practice. Pettigrew has served nine years on the board of the banking and financial services provider. Virgin Money UK said it has initiated a search process to allow time to identify his successor and enable an orderly handover.
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COMPANIES - OTHER MAIN MARKET AND AIM
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RTC Group said it was pleased with its positive performance despite economic uncertainty in the country. The engineering and technical recruiter said it traded in line with market expectations in 2019. "The performance of the group and improvement in the net debt position is extremely pleasing and encouraging, especially in light of the uncertainty surrounding the UK economy. I remain cautiously confident in our ability to deliver continued growth across all areas of our business." said RTC Chair Bill Douie.
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COMPANIES - INTERNATIONAL
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Uber Technologies has announced an agreement for Nissan Motor to supply up to 2,000 electric cars to its drivers in London. The ride hailing app firm's 45,000 drivers in the capital will be able to apply to use the Leaf vehicles. The cars will be manufactured at Nissan's Sunderland factory and can travel up to 168 miles on a single charge. Uber has raised more than GBP80 million through its Clean Air Plan to tackle air pollution since it launched in January 2019. The scheme includes adding a 15p fee to all London journeys. Uber says the money is used to support the cost of drivers switching to electric vehicles.
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Friday's Shareholder Meetings
Marston's
Nu Oil & Gas
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By Tom Waite; thomaslwaite@alliancenews.com
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