Just Eat takeover of Hungryhouse cleared by CMA, shares spike

Just Eat (LON: JE.) has said today that its proposed merger with rival takeaway delivery group Hungryhouse has been cleared by the Competition and Markets Authority,  sending shares up 6% in early morning trading.

The takeover, which was first announced 10 months ago, was threatened in May this year as the CMA undertook a full inquiry to determine whether the deal would hinder fair deals for the companies' restaurant partners.

With a November 2 deadline, the CMA has today "provisionally cleared" the acquisition which has come as welcome news for Just Eat.

Just Eat began in Denmark in 2001 and began operating in the UK in 2006, around the same time Hungryhouse began as a startup.

Just Eat shares have risen steadily its IPO in April 2014, growing from an opening price of 280p to today's price of 740p with the Hungryhouse merger set to further strengthen the Group as an industry leader.

With a market cap of £4.7bn JE trades at a PE ratio of 32x against the industry median of 19x. FY17 Net Profit is forecast to reach £112m from Revenues of £512m in FY17, up from £84m and £450m in FY16 respectively.