Delivery Hero ends talks on potential sale of Foodpanda

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Delivery Hero has pulled the plug on discussions with “the main negotiating counterpart” in the sale of its Foodpanda business in select Southeast Asian markets.

In a statement, the Berlin-headquartered firm said it believed it was aligned with the potential buyer on “fundamental terms,” but it eventually withdrew from talks “as this is no longer the case.”

While Delivery Hero has not disclosed the identity of its negotiating counterpart, Grab was reportedly the suitor. Earlier this month, Delivery Hero had denied rumors that talks with Grab had fallen through.

Niklas Östberg, Delivery Hero’s co-founder and CEO, said the company sees Asia Pacific as “strongly positioned to drive profitable growth at scale.”

“The strength of our APAC business has become evident during the last quarters as the region reached an inflection point in 2023,” he said. “The decision to terminate negotiations after months of discussions was taken after careful consideration.”

Delivery Hero reported positive adjusted EBITDA of 253 million euros (US$273.9 million) for the 2023 financial year, a major reversal compared to the previous year. However, its growth hurdles in Asia remained, with its gross merchandise value down 5.8% year on year.

The company remains open to mergers and acquisitions, but it will only proceed with negotiations “where it can create value to shareholders and with high certainty of closing.”

A Foodpanda buyout would have made Grab the undisputed food delivery leader in Southeast Asia. It already has a 55% market share in the region, according to estimates from venture builder Momentum Works.