Meituan has confirmed that it is not interested in acquiring Delivery Hero’s Southeast Asian food delivery service Foodpanda, The Business Times reports. Citing DBS Group Research, it is said that the Beijing-based company had revealed this during a conference with investors, but it is unclear as to why it had decided to pull out from the deal.
As you may recall, it was reported last month that Meituan is among those interested in acquiring Foodpanda after its operator, Delivery Hero, announced its intention to sell the business in Southeast Asia all the way back in September this year. It was also said that the Chinese giant has plans to diversify beyond its domestic market, therefore procuring the business could potentially expand its presence in countries such as Singapore, Malaysia, The Philippines, Thailand, Cambodia, Myanmar and Laos.
However, as reported by The Business Times, it looks like Meituan is no longer a contender in the bid for Foodpanda’s business in the region. DBS Group Research believes that the Beijing-based company views delivery services as a sub-scale business, especially when given the fact that it only comprises just 5% to 6% of the size of the delivery market in China.
Meituan’s withdrawal from the deal comes as good news for Grab. According to the same report, the company’s stock price has corrected by 10% in the last two weeks on rumours of the Chinese giant potentially acquiring Foodpanda. It is also worth noting that Grab has been named as one of the likeliest bidders for Delivery Hero’s food delivery business, though nothing has been concretely confirmed at this time.
(Source: The Business Times)
