Taiwan regulator blocks Grab's purchase of Foodpanda delivery business in Taiwan
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
TAIPEI: Taiwan's Fair Trade Commission said on Wednesday (Oct 21) it had blocked Grab's purchase of Delivery Hero's Foodpanda delivery business in Taiwan, citing competition concerns.
Grab, Southeast Asia's biggest ride-hailing and delivery firm, said in March it would pay US$600 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 Southeast Asia remains robust. We will continue to focus our capital and resources on executing our growth roadmap and empowering communities across our regional footprint."
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.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Newsletter
Morning Brief
Subscribe to CNA’s Morning Brief
An automated curation of our top stories to start your day.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app