Termination Costs Uber $250M as Delivery Hero Shares Slide
Uber Technologies (UBER) has officially scrapped its $950 million acquisition of Delivery Hero SE’s Foodpanda business in Taiwan after the island’s antitrust regulator blocked the deal in December. The decision forces Uber to pay an estimated $250 million termination fee to Delivery Hero, the company confirmed in a statement on Tuesday.
Despite expressing disappointment over the ruling, Uber stated that it respects the decision and will not appeal. “We remain committed to Taiwan and will continue to serve consumers, merchants, and delivery partners there in innovative and competitive ways,” an Uber spokesperson said.
Following the announcement, Delivery Hero’s shares fell as much as 5.7% in Frankfurt trading on Wednesday, while Uber’s stock declined 3.3% on Tuesday.
The now-canceled deal was set to be one of Taiwan’s largest acquisitions outside of the semiconductor industry, marking a strategic pullback for Delivery Hero from Asia. Despite the setback, Delivery Hero maintains that Taiwan remains an important part of its long-term strategy.
The food delivery sector has been undergoing consolidation worldwide as demand has struggled to return to pandemic-era levels. On Monday, London-based Deliveroo Plc announced its exit from Hong Kong, citing weak sales and stiff competition from Foodpanda and Keeta, a unit of Chinese delivery giant Meituan. Similarly, in February, Prosus NV agreed to acquire Just Eat Takeaway.com for $4.5 billion, months after Wonder Group Inc. took over Grubhub.
Uber’s withdrawal from the Taiwan deal underscores the regulatory hurdles facing major acquisitions in the industry, as companies navigate evolving market conditions and intensified competition.
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