The deal between Grab Holdings Ltd and Delivery Hero on the sale of the latter’s Foodpanda business in Southeast Asia is facing delays, New Straits Times reports. Due to issues concerning pricing, negotiations are now expected to be completed by the first quarter of 2024.
Discussions appear to have hit a snag as neither company could agree on Foodpanda’s valuation. The report noted that sources familiar said Delivery Hero offered the business at a price that was “too high” for Grab to accept.
Prior to this, it was expected that the deal was likely to finalise by the end of the year. Both Grab and Delivery Hero did not provide a comment when approached by New Straits Times regarding the matter.
The potential sale also raised concerns about the possible monopoly by Grab Holdings Ltd within Southeast Asia. By acquiring Delivery Hero’s Foodpanda business in the region, this would further expand the tech giant’s presence in countries including Singapore, Malaysia, The Philippines, Thailand, Cambodia, Myanmar and Laos. It’s been reported that this concern has called upon the Malaysian Competition Commission (MyCC) to investigate the matter.
On a related note, Delivery Hero announced on Monday that it would shut down its global tech hubs in Turkey and Taiwan and also reduce its staff to cut costs. It is said that the company has reduced its workforce in its Berlin headquarters and global service roles by about 13% this year, which included a round of job cuts in January.
Meanwhile, it was previously reported that Meituan had pulled out from the Foodpanda bid. The Beijing-based company was considered as one of the potential buyers of Delivery Hero’s p-hailing business in Southeast Asia, but this no longer appears to be the case as it is said that the company is no longer interested in the deal.
(Source: New Straits Times)
