Thursday, September 19, 2024

Delivery Hero shares drop as it flags potential EU antitrust fine

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:Shares in Delivery Hero fell 11 per cent in early trading on Monday, a day after the German online food takeaway firm said it may face a fine exceeding 400 million euros ($433 million) due to antitrust violations.

The potential fine would be for “alleged anti-competitive agreement to share national markets, exchanges of commercially sensitive information and no-poach agreements”, the company said in a statement published on Sunday evening.

Delivery Hero said it would cooperate with the European Commission, like it did during unannounced inspections in July 2022 and November 2023.

It will also significantly increase its corresponding provision, which it had previously built in the amount of 186 million euros, it said.

Analysts at Jefferies said in a note that the biggest challenge is neither the materiality of the fine nor the company’s ability to pay it, but rather “the fact pattern that it creates”.

($1 = 0.9240 euros)

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