Uber to acquire foodpanda's Taiwan segment in $950M deal

Uber (UBER) has set its sights on acquiring food and grocery delivery platform foodpanda's Taiwan segment for $950 million. Foodpanda is owned by the Germany-based Delivery Hero (DHER.DE).

Yahoo Finance Senior Business Reporter Ines Ferré breaks down the details of the all-cash deal and the regulatory scrutiny the deal could face.

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This post was written by Luke Carberry Mogan.

Video transcript

Let's take a look at Uber shares are off just over 1% here in early trading.

The ride sharing company acquiring delivery Heroes of Food and the business in Taiwan spend 950 million bucks on this acquisition.

Yahoo Finance senior reporter, this has the details on that and yes on on the acquisition would mark one of the largest international deals for Taiwan for $950 million.

Uber will will acquire delivery heroes, food panda deliver a business now delivery hero operates in 70 countries but this deal is just for its Taiwanese business.

The acquisition is slated to close in the first half of next year until the closing.

Delivery hero will maintain food panda's Taiwan operations post that acquisition.

Uber eats will own all of food panda's local clientele, its merchants, its delivery partners and Uber still needs the regulatory approval to complete this transaction.

Bernstein analysts say that it will face anti trust scrutiny because basically food panda and Uber eats split the delivery market in Taiwan.

The analysts expect a reduction in competitive intensity and also a consolidation of fixed costs.

Uber has said major urban areas in the northern part of Taiwan would see a wider selection if this deal goes through.

And it does also signal Uber's confidence in the Taiwanese investment climate.

All right, Anez, thank you so much, really appreciate you joining us on that.