 "Taiwan blocks Uber's $950 million purchase of Delivery Hero's Foodpanda")
Taiwan has rejected Uber Technologies Inc.’s plan to acquire Delivery Hero SE’s Foodpanda local business for $950 million, the official Central News Agency reported.
Taiwan’s Fair Trade Commission on Wednesday decided against the proposed deal, citing anti-competitive concerns, according to the state-backed news agency, which did not say where it obtained the information.
Uber had aimed to complete the all-cash deal by the first half of 2025. The acquisition would have been one of Taiwan’s largest outside of the chip industry, marking a retreat for Delivery Hero from Asia.
But the FTC, which declined to comment ahead of a 5 pm briefing in Taipei, earlier this month indicated its concerns about the deal.
“As UberEats and Foodpanda each have a considerable market share, the market concentration will increase after the merger,” it said on Dec. 9. “Further economic analysis must be done on the overall economic benefits and the disadvantages from the restraint in competition.”
Uber and Delivery Hero, which couldn’t immediately be reached for comment, had previously stressed the takeover was contingent on regulatory approval — they’re the two dominant players in the market.
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But in their May 13 joint announcement, the companies noted Uber had a wider selection across northern Taiwan and in major urban centers, which could complement Foodpanda’s “comparative strength” in southern Taiwan and smaller cities.
This is the second big takeover stopped by Taiwan regulators recently. In September, the Financial Supervisory Commission rejected CTBC Financial Holding Co.’s multibillion-dollar bid for smaller rival Shin Kong Financial Holding Co.