Uber Technologies has officially terminated its proposed $950 million acquisition of Delivery Hero's Foodpanda business in Taiwan due to significant regulatory challenges. Originally announced in May, the deal faced opposition from the Taiwan Fair Trade Commission, which in December blocked the transaction, stating that the 'disadvantages from competition restraints would be greater' than any potential economic benefits.
An Uber spokesperson expressed disappointment regarding the decision, saying, 'While we are disappointed with the outcome, we respect the decision of the competition authority and will not be pursuing an appeal.' They reaffirmed their commitment to the Taiwanese market. Delivery Hero confirmed on Tuesday that Uber had decided to terminate the deal, which obligates Uber to pay an estimated $250 million termination fee.
The statement from Delivery Hero emphasized, 'Taiwan remains a key part of Delivery Hero's long-term strategy,' highlighting their intent to continue enhancing Foodpanda’s position in this competitive market. In a broader context, last month Uber released a cautious fiscal first-quarter gross bookings outlook at the midpoint, following an unexpected increase in earnings for the fourth quarter.
Moreover, in February, investor Bill Ackman revealed that his Pershing Square hedge fund had acquired a stake in Uber. Following the news, Uber shares saw a 1% rise in late-afternoon trading on Wednesday, having surged 18% since the beginning of the year. This situation reflects the complex landscape of mergers and acquisitions within highly regulated markets, showcasing the ongoing challenges faced by major players in the food delivery sector amid evolving regulatory frameworks..