((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Adds fair trade commission)
Taiwan blocked Uber Technologies' takeover of Delivery Hero's Foodpanda business
DHER.DE for $950 million on the island due to competition concerns, the Fair Trade Commission (FTC) said on Wednesday.
Uber, Delivery Hero and Foodpanda did not immediately respond to requests for comment outside of regular business hours.
In a press briefing, the commission said the merger is prohibited because its negative impact on market competition outweighs the overall economic benefits, and competition cannot be maintained through remedial measures.
“In the food delivery platform market, UberEats' main competitive pressure comes from Foodpanda. The merger would eliminate this competitive pressure… After the merger, UberEats would be less constrained by competition, giving it more incentive to raise prices for consumers and even commissions for restaurant owners,” said Chen Chih-min, vice chairman of the Taiwan FTC.
Chen added that after the merger, the combined market share of the two companies in Taiwan would exceed 90 percent.
Uber and Delivery Hero announced the Taiwan deal in May, which also included a separate agreement for Uber to purchase $300 million of newly issued shares in the German food delivery company.
The U.S. company expected the acquisition to contribute at least $150 million per year to the adjusted core earnings of its delivery business within a year of closing. operation, which was considered probable in the first half of 2025.
Online food delivery platforms represent a small fraction of Taiwan's competitive food delivery market, but Foodpanda's operations on the island broke even in terms of adjusted core profits for the trailing 12 months. ending March 31, 2024, the companies said.
