Taiwan Blocks Grab's $600 Million Deal for Foodpanda's Delivery Business
The island's Fair Trade Commission ruled the harm to competition outweighed the benefits, citing insufficient commitments from the companies.
TAIPEI, Oct 21 (Reuters) - Taiwan's Fair Trade Commission said on Wednesday 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 $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.
(Reporting by Ben Blanchard, Jeanny Kao and Wen-Yee Lee; Editing by Christian Schmollinger and Jan Harvey)
