Foodpanda parent company backs out of negotiations after allegedly eyeing sale to Grab

SINGAPORE: Following news reports that Grab might acquire foodpanda’s Asian operations for S$1.5 billion, foodpanda parent company Delivery Hero confirmed that it has terminated negotiations with a potential buyer due to differences in fundamental terms of the sale of the business.

In an official statement, the German conglomerate said, “At that time, the Company believed it had reached an alignment with the potential buyer on the fundamental terms regarding the sale of the business. However, Delivery Hero took the decision to withdraw from negotiations as this is no longer the case.”

The company emphasized its openness to merger and acquisition opportunities but clarified that future negotiations must “create value for shareholders with high certainty of closing.”

Niklas Östberg, CEO and Co-Founder of Delivery Hero, highlighted that the company’s business in the Asia Pacific region experienced an inflection point in 2023. He expressed confidence in the region’s ability to drive profitable growth at scale, indicating a strategic focus on maximizing opportunities in the dynamic Asian market.

The sale of foodpanda encompasses its operations in several key markets, including Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar, and Laos.