Grab’s plan to acquire Foodpanda is experiencing delays, extending the expected timeline for the deal into the first quarter of 2024.
According to NST sources, discussions between Grab and Delivery Hero, the owner of Foodpanda, have hit a roadblock due to the inability of both parties to reach an agreement on the valuation of Foodpanda.
Foodpanda reportedly proposed a sum that Grab deemed excessively high. It was previously reported in November that Delivery Hero was likely to finalise the sale of its Foodpanda operations in Malaysia by the end of the year. Grab Holdings, based in Singapore, was rumoured to be the leading candidate for the acquisition.
The potential sale raised concerns about a monopoly in the “p-hailing” sector (delivery of food, drinks, and packages), prompting calls for the Malaysian Competition Commission (MyCC) to investigate the matter.
Grab’s interest in acquiring Foodpanda across seven Southeast Asian markets, including Cambodia, Laos, Myanmar, the Philippines, Singapore, and Thailand, was initially revealed in September.
Despite reports suggesting a possible contender in China’s Meituan, the company later declared its lack of interest in the acquisition, solidifying Grab’s position as the frontrunner.
On Monday (18 November), Delivery Hero announced plans to close its global tech hubs in Turkey and Taiwan, along with workforce reductions in Berlin, Germany, as part of cost-cutting measures.
The company had already reduced its Berlin headquarters workforce and global service roles by approximately 13% throughout the year, including layoffs in January.
