Taiwan's Fair Trade Commission has blocked Grab's planned purchase of Foodpanda's food delivery business on the island, saying the deal would harm competition, CNA reports.
Grab, the largest ride-hailing and delivery company in Southeast Asia, announced in March that it would pay US$600 million in cash for the Taiwanese operation of Foodpanda, which is owned by Germany's Delivery Hero. It would have been Grab's first expansion beyond its home region.
The regulator said on Wednesday that the damage to competition outweighed the economic benefits, and that the commitments offered by the two companies were not enough to address its concerns. Grab said it was disappointed and would focus on growth in Southeast Asia. Delivery Hero said the agreement includes protections such as a break fee, subject to certain conditions.
Source: CNA
