Taiwan regulator blocks Grab's purchase of Foodpanda delivery business in Taiwan

Taiwan's Fair Trade Commission has halted Grab's acquisition of Delivery Hero's Foodpanda delivery service in Taiwan due to competition concerns, according to a report released on October 21. The Southeast Asian ride-hailing and delivery giant proposed to pay $600 million in cash for the Taiwan-based Foodpanda in its first expansion outside the region.

The regulator determined that the potential harm to competition from this deal outweighed any economic benefits, and that the commitments from both companies were insufficient to address the competition issues. Grab expressed disappointment with the decision, stating that its core business in Southeast Asia remains strong and it will continue to focus on growth and community empowerment.

Delivery Hero, meanwhile, claims the transaction includes adequate deal protections, such as a break fee arrangement under certain conditions.