Key facts
- The regulator cited competition concerns and insufficient commitments from the companies.
- Grab expressed disappointment, stating its core business in Southeast Asia remains robust.
- Delivery Hero has deal protection clauses, including a break fee, under the transaction terms.
Taiwan's Fair Trade Commission announced on Wednesday it had blocked Grab's planned acquisition of Delivery Hero's Foodpanda delivery business in Taiwan due to competition concerns. Grab, a major ride-hailing and delivery firm in Southeast Asia, had agreed in March to purchase the Taiwanese operations for $600 million in cash. The regulator determined that the potential harm to competition from the deal outweighed its economic benefits, and that the commitments provided by Grab and Delivery Hero were inadequate to resolve these issues. Grab stated it was disappointed by the decision but affirmed the strength of its core business in Southeast Asia. Delivery Hero confirmed that the transaction agreement includes deal protection measures, such as a break fee, subject to certain conditions.