Delivery Hero denies deal to sell Foodpanda to Grab was cancelled

Image credit: Timmy Loen

Germany’s Delivery Hero rebutted a rumor that talks for selling the Southeast Asian chunk of its Foodpanda business had fallen through. The firm says in a statement on February 2 that negotiations are active.

Earlier reports indicate that Southeast Asia superapp company Grab is a suitor in the sale. Delivery Hero says it is looking to offload Foodpanda’s businesses in Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar, and Laos.

But even if deal talks succeed, the sale will need to be approved by a Delivery Hero’s Supervisory Board and regulators in various markets.

A Foodpanda buyout would cement Grab as the leading food delivery player in Southeast Asia. It already has a 55% market share in the region, consultancy firm Momentum Works estimates.

Delivery Hero’s denial comes after Malaysian publication New Straits Times reported that Grab’s bid for Foodpanda had collapsed.

Chinese food delivery giant Meituan was identified as a possible contender to buy the business, but confirmed that it is not making the move.

Foodpanda has also been trimming its headcount ahead of a potential sale.

See also: Foodpanda deal would cement Grab’s market dominance – if regulators allow it