The sale of Delivery Hero’s Foodpanda business in Southeast Asia to Grab Holdings Ltd has reportedly collapsed due to disagreements over pricing.
The Frankfurt-listed Delivery Hero’s valuation of Foodpanda was deemed “sky-high valuation” by Grab, which is currently focused on achieving profitability and enhancing its ride-sharing services in Singapore, according to NST.
The deal, initially expected to be completed by the end of the previous year, faced delays, and the disagreement on valuation has now led to its apparent failure.
Grab was rumoured to be the frontrunner for the acquisition of Foodpanda operations in seven Southeast Asian markets, raising concerns about potential monopoly issues in the food delivery sector.
Calls were made for the Malaysian Competition Commission to investigate the matter, with experts noting the importance of ensuring competition and preventing abuse of market dominance.
The reported value of the deal had initially been suggested to exceed EUR1 billion (~RM5.14 billion), but Delivery Hero stated that the value was yet to be confirmed.
