Taiwan is blocking taxi and food delivery company Uber's purchase of competitor Foodpanda's local delivery operations, reports The Wall Street Journal.
The multi-billion deal would have been one of the country's largest outside the semiconductor sector.
Taiwanese competition authorities have blocked US-based Uber's purchase of Foodpanda's operations in the country. The deal was expected to be worth $950 million, equivalent to 10.5 billion kronor. The decision is justified by the risk that it could lead to price increases from Uber, and that it would make it more difficult for new competitors to enter the market.
Uber states that it is disappointed with the decision and that the company has previously tried to accommodate the authorities regarding the competitive situation. The company will continue to operate in the country, writes the Wall Street Journal.
Delivery Hero, Foodpanda's German parent company, is calling on Uber to either appeal the decision or scrap the offer. The deal, had it gone through, would also have involved Uber buying newly issued shares in Delivery Hero worth $300 million. Asia is Delivery Hero's largest market and accounted for around 23 percent of revenue last year.
The deal, which came about in May of this year, was set to be one of Taiwan's largest international corporate acquisitions outside of the semiconductor sector. Taiwan is described as one of the world's fastest-growing markets for food delivery.
Source: DI.SE
