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 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 yesterday, Just Eat Takeaway said it had initiated proceedings in the International Chamber of Commerce to enforce the standstill agreement.

"Takeaway 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.

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