FTC awaits documents for Grab's US$600M foodpanda acquisition

Taipei, April 23 (CNA) Singapore-based ride-hailing and delivery giant Grab Holdings planned acquisition of foodpanda's Taiwan operations has yet to enter the formal review stage, as regulators await supplementary documents, Taiwan's Fair Trade Commission (FTC) said Thursday.

Acting FTC Chairman Chen Chih-min (陳志民) told the Legislature's Economics Committee that although Grab submitted its application on March 27, the case has not been officially accepted because required materials remain incomplete.

Once the filing is finalized, the FTC will launch a formal probe into the deal, focusing on issues such as cross-shareholding and potential restrictions on market competition, Chen told lawmakers.

Grab announced in March that it would acquire foodpanda's Taiwan business from Germany-based Delivery Hero for about US$600 million, subject to regulatory approval.

If cleared, Grab expects to close the deal in the second half of 2026 and complete platform integration by the first half of 2027, migrating all foodpanda users to its own app.

The deal has drawn scrutiny over ownership ties in the sector. Uber Technologies is Grab's largest institutional shareholder, holding about a 13 percent stake, prompting concerns among lawmakers that the acquisition could serve as a "backdoor" for market consolidation.

Grab has previously clarified that Uber holds less than 4 percent of its voting rights and does not participate in daily operations.

Chen noted that while cross-border shareholding is not illegal, the FTC would require concrete evidence to challenge the deal on these grounds, including proof that such ties have been used to limit market rivalry in the past.

Lawmakers also raised concerns about the deal's potential impact on gig workers and consumers. Chen said that while labor issues fall primarily under the Ministry of Labor, the FTC may assess labor supply and demand dynamics as part of its competition review, while maintaining a focus on market mechanisms.

He added that the commission would consult with other government agencies, given the platform economy's wide-ranging implications for consumers, merchants and delivery workers.

Under Taiwan's merger review rules, once a filing is formally accepted, the FTC is required to complete its review within 30 working days, which may be extended by up to 60 days if necessary, with a maximum review period of 90 working days.