Taiwan Blocks Uber's Acquisition of Foodpanda

(Reuters) – Taiwan has blocked Uber Technologies (NYSE:UBER)‘s $950 million purchase of Delivery Hero's Foodpanda business on the island due to anti-competition concerns, as reported by Taiwan's Central News Agency (CNA) on Wednesday.

Uber, Delivery Hero, and Foodpanda did not respond to requests for comment outside of regular business hours.

Taiwan’s Fair Trade Commission declined to comment but stated that an explanation will be provided at a press conference at 5 p.m. (0900 GMT) in Taipei.

CNA did not disclose the source of its information.

Uber and Delivery Hero announced the Taiwan deal in May, which included a separate agreement for Uber to purchase $300 million worth of newly issued shares of the German food delivery firm.

The U.S. company anticipated the acquisition would contribute at least $150 million annually to the adjusted core profit of its delivery business within a year after the deal's closure, expected in the first half of 2025.

While online food delivery platforms are a small segment of Taiwan's competitive food delivery market, Foodpanda's operations on the island were reported to be break-even in terms of adjusted core earnings for the 12 months ending March 31, 2024.