Fair Trade Commission Officially Accepts Grab's Acquisition of Taiwan's foodpanda; Conclusion Expected by End of July

Taipei, Taiwan (CNA) - Southeast Asian ride-hailing and delivery giant Grab's acquisition of foodpanda's Taiwan business has been officially accepted by the Fair Trade Commission (FTC) in mid-June, following several months of supplementary documentation. If the review period is not extended, a conclusion is expected by the end of July. The FTC stated that the review will focus on the market impact of the merger, potential monopolistic concerns, and will also specifically discuss the "indirect investment" concerns that have drawn public attention.

Grab previously announced its intention to acquire foodpanda's Taiwan operations for approximately $600 million USD (about NT$19.3 billion). On March 27, Grab submitted its application for the acquisition of foodpanda's Taiwan business to the FTC. If approved by the FTC, Grab anticipates completing the transaction in the second half of this year.

The FTC officially accepted the merger case between Grab Holdings Limited and Foodpanda Taiwan Co., Ltd. in mid-June. The case is now in the public comment solicitation phase, after which the relevant departments will compile and analyze the information before submitting it for discussion at a commission meeting.

According to regulations, the FTC must make a decision within 30 working days. However, depending on the complexity of the case, the review period may be extended by an additional 60 working days. Based on this timeline, if the review is not extended, a conclusion is expected by the end of July. However, if the commission decides to extend the review period, the results may not be available until mid-to-late October.

The FTC stated that the key focus of the review will be the market impact of the merger, including whether there are any monopolistic concerns and if it creates barriers to entry for new competitors.

Regarding the previous rejection of the Uber Eats and foodpanda merger case, it is noted that Uber is Grab's largest institutional shareholder, holding approximately 13.5% of its shares. Grab's current acquisition of Taiwan's foodpanda has raised concerns about an "indirect investment" or "roundabout investment."

An FTC official pointed out that during the review of this merger case, it will be necessary to determine whether it constitutes a horizontal, vertical, or conglomerate merger. Furthermore, the extent to which Uber has substantive control over Grab will influence the judgment of the merger type and will be an important point of discussion during the review. (Editor: Zhai Sijia) 1150701

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