Taiwan blocks Grab’s $600 million purchase of Foodpanda — Channel NewsAsia

Taiwan’s Fair Trade Commission has blocked a deal under which Grab was to acquire Delivery Hero’s Foodpanda food delivery business in Taiwan. The regulator said the proposed transaction posed risks to competition in the market.

Regulator’s decision

As Channel NewsAsia reports, the commission concluded that the deal’s negative impact on competition outweighed its overall economic benefits. The commitments proposed by Grab and Delivery Hero were, in the agency’s assessment, insufficient to eliminate competition risks.

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Terms of the planned deal

In March, Grab, Southeast Asia’s largest ride-hailing and delivery company, announced plans to pay $600 million in cash for Foodpanda’s business in Taiwan. This was to become the company’s first expansion beyond Southeast Asia.

Grab said it was disappointed by the Taiwanese regulator’s decision and announced its intention to continue directing capital and resources toward implementing its regional growth plan. Delivery Hero noted that the deal’s terms provided mechanisms to protect the parties, including the payment of termination compensation under certain conditions.