Uber Technologies has officially terminated its planned acquisition of Delivery Hero's Foodpanda in Taiwan due to an antitrust ruling. Taiwan's Fair Trade Commission concluded that the acquisition would result in a monopolistic scenario for Uber, increasing its market share to 90%. As a result, Uber must pay a substantial termination fee of $250 million. The failed deal underscores Uber's ambitions to expand in Asia, while also reflecting Delivery Hero's strategic withdrawal from several Southeast Asian markets amidst fierce competition. Both companies have yet to comment on the development.
Uber's acquisition of Delivery Hero's Foodpanda in Taiwan was terminated after the antitrust regulator blocked it, raising concerns over Uber's potential 90% market share.
The Fair Trade Commission's decision was based on competitive issues, warning that an acquisition would lead to price hikes by Uber due to their dominant market position.
Uber was expected to pay a termination fee of approximately $250 million after failing to finalize the acquisition, indicating significant costs associated with the deal.
The termination reflects broader trends in Southeast Asia, where Delivery Hero is pulling back from markets and facing stiff competition from regional players.
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