Taiwan regulator blocks Grab’s purchase of Foodpanda delivery business in Taiwan
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Grab said it was disappointed by the decision.
PHOTO: REUTERS
- Taiwan’s Fair Trade Commission blocked Grab’s US$600 million purchase of Foodpanda’s Taiwan delivery business over competition concerns.
- The regulator said the deal’s harm outweighed its economic benefits, and the companies’ commitments were “insufficient to eliminate the competition concerns”.
- Grab said it was disappointed but would focus on growth in South-east Asia. Delivery Hero said it has deal protections, including a break fee arrangement.
AI generated
TAIPEI – Taiwan’s Fair Trade Commission said on Oct 21 it had blocked Grab’s purchase of Delivery Hero’s Foodpanda delivery business in Taiwan, citing competition concerns.
Grab, South-east Asia’s biggest ride-hailing and delivery firm, said in March it would pay US$600 million (S$770 million) in cash for the Foodpanda delivery business in Taiwan, in its first expansion outside the region.
The Fair Trade Commission said the harm to competition from the proposed deal outweighed its overall economic benefits, and that the commitments offered by the companies were “insufficient to eliminate the competition concerns”.
Grab said it was disappointed by the decision.
“Grab’s core business across South-east Asia remains robust. We will continue to focus our capital and resources on executing our growth roadmap and empowering communities across our regional footprint,” it said.
Delivery Hero said in a statement that under the terms of the transaction it has appropriate deal protections, including a break fee arrangement, subject to certain conditions. REUTERS