Just Eat Takeaway.com launches arbitration proceedings against rival Delivery Hero
Just Eat Takeaway.com has launched arbitration proceedings against Delivery Hero after the latter upped its stake in the newly merged business which Takeaway said violated a standstill agreement between the pair.
Just Eat Takeaway.com was formed last month after UK food delivery service Just Eat merged with Dutch business Takeaway.com.
Delivery Hero said last month it had agreed to buy 8.4m shares in the merger business for €798m (£695m).
In a statement today, Just Eat Takeaway.com said it had initiated proceedings in the International Chamber of Commerce to enforce the standstill agreement.
“Takeaway.com believes that Delivery Hero has failed to comply with its standstill undertaking under the relationship agreement by entering into the forward share purchase and equity collar transaction it announced on 12 February,” the company said.
The agreement was entered into in connection with Takeaway.com’s acquisition of Delivery Hero’s German business for €930m in April 2019.
Delivery Hero said last month that it was restoring its stake via the share purchase which had been diluted by the merger between Takeaway.com and Just Eat.
“Delivery Hero’s failure to comply with its standstill undertaking constitutes a breach of the relationship agreement. Takeaway.com regrets that it now needs to initiate arbitration proceedings with the International Chamber of Commerce to enforce Delivery Hero’s standstill undertaking,” the company said.
Delivery Hero was contacted for comment.