Grab Holdings agree to buy foodpanda business in Taiwan

Taipei, March 23 (CNA) Grab Holdings Ltd., a leading super app in Southeast Asia, said on Monday that it has agreed to acquire Delivery Hero's foodpanda delivery business in Taiwan for US$600 million in cash.

In a statement, Grab said the acquisition deal is subject to regulatory approval and scheduled to be completed in the second half of this year.

The deal will help Singapore-headquartered Grab extend its reach to a ninth market, its first outside Southeast Asia, according to the company.

"Our longstanding expertise in managing complex delivery logistics for dense and high-traffic cities is well-suited for Taiwan's bustling cities," Grab CEO and Co-founder Anthony Tan said in the statement.

"Taiwan's population of approximately 23 million also has a high demand for mobile-first services, similar to the Southeast Asian consumers who Grab serves every day," Tan said. "We see a significant opportunity to grow the food and groceries delivery scene here."

Grab reiterated its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance of US$700 million to US$720 million for 2026. The company said the proposed transaction is expected to contribute at least US$60 million in incremental adjusted EBITDA in 2028.

EBITDA is used as an indicator of the overall profitability of a company.

In December 2024, Taiwan's Fair Trade Commission voted to block delivery platform Uber Eats' proposed acquisition of the foodpanda business in the country on the grounds that it would restrict competition.