Uber has canceled its $950 million acquisition of Delivery Hero’s Foodpanda in Taiwan due to regulatory challenges.
Foodpanda made this disclosure in a statement on Tuesday, according to Reuters.
In December, Taiwan’s Fair Trade Commission blocked the deal over anti-competitive concerns, arguing that acquiring Foodpanda, Uber’s main rival, would give Uber a 90% market share and potentially lead to higher prices.
Uber confirmed it will not appeal Taiwan’s FTC decision and will pay a $250 million termination fee.
The deal, announced in May last year, also included a separate agreement for Uber to purchase $300 million in newly issued shares of Delivery Hero.
Delivery Hero stated that the acquisition’s termination would not impact the share-purchase agreement.
While food delivery platforms in Asia have recovered from a post-pandemic slowdown, they continue to face intense competition and thin margins, driven by heavy spending on discounts to attract cost-conscious customers.
