Domino's buys Joey's Pizza, becomes largest pizza delivery co in Germany

(Reuters) - Britain's Domino's Pizza Group PLC (DOM.L) (DPG) said on Tuesday it is forming a joint venture with Domino's Pizza Enterprises (DMP.AX) (DPE) to buy Joey's Pizza for 45 million euros ($49.13 million), creating Germany's largest pizza delivery group.

Domino's has struggled to grow in Germany, the world's fourth-largest pizza market.

The latest deal would bring the total number of stores under Domino's to about 227, as it tries to "overcome the challenges it has faced as a small operator in the country", the company said.

Upon meeting certain performance goals, the deal value could be elevated to 79 million euros, DPG said.

Domino's will acquire Joey's through a new joint venture between DPE and DPG, where the new company would have 2/3rd representation from Australia-listed Domino's Pizza Enterprise. Fifteen of the 20 stores will be absorbed by the new joint venture, while the remaining will be closed, the company said.

($1 = 0.9159 euros)

(Reporting by Ankush Sharma in Bengaluru)