Taiwan Blocks Grab Acquisition of Foodpanda Taiwan Business
Taiwan's Fair Trade Commission blocked Grab's US$600 million bid to acquire Foodpanda's Taiwan operations over competition concerns.
The Fair Trade Commission of Taiwan blocked a proposed US$600 million cash acquisition of Foodpanda's Taiwan delivery business by Grab on October 21. The regulator determined that the potential harm to market competition outweighed the economic benefits of the deal.
The commission stated that the commitments offered by the companies were "insufficient to eliminate the competition concerns." The blocked transaction would have represented the first expansion for the Southeast Asian ride-hailing and delivery firm outside of its home region.
Grab expressed disappointment with the ruling and announced it will instead focus its capital and resources on its growth roadmap within its existing regional footprint. Delivery Hero, the parent company of Foodpanda, noted that the transaction terms include deal protections, including a break fee arrangement, subject to specific conditions.
