Prosus NV (PROSY) has secured conditional European Union approval for its planned 4.1 billion ($4.8 billion) acquisition of Just Eat Takeaway.com, after agreeing to reduce its stake in rival Delivery Hero SE. The European Commission said Monday the deal could proceed once Prosus cuts its holding in Delivery Hero to a very low percentage within 12 months, refrains from exercising related voting rights, and avoids nominating any board members. The regulator noted the commitments could address concerns about reduced competition in Europe’s online food delivery market.

The takeover could position Prosus as the world’s fourth-largest food delivery group, trailing only Uber Technologies, DoorDash, and China’s Meituan. Just Eat’s footprint spans 17 markets, including the UK, Germany, and the Netherlands, while Prosus already controls Brazil’s iFood and owns stakes in India’s Swiggy and other regional platforms. Analysts suggest the combination could create a more geographically diversified portfolio at a time when the sector faces heightened competition and pressure on margins.

The food delivery industry, which expanded rapidly during the pandemic, has shifted into a phase of consolidation as players seek scale and operational efficiencies. Prosus’ move could signal a strategic bet on long-term growth across multiple continents, even as regulatory oversight and price competition remain significant hurdles. The EU’s conditions, coupled with Prosus’ global holdings, could shape competitive dynamics across both European and emerging markets in the months ahead.

This article first appeared on GuruFocus.