Delivery Hero Abandons Negotiations For Foodpanda Southeast Asian Sale
The credible sources of The Reader Wall were the first to reveal that Delivery Hero, a highly prominent German food delivery company, has ended its non-binding negotiations regarding the prospective sale of its Foodpanda business in various Southeast Asian markets.
Initial Negotiation Arrangements and Future Strategies
Our source outlined that the preliminary talks surrounding the sale of business operations in countries including Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar, and Laos were initiated in September, collaboratively with a series of workforce reductions aimed at operational efficiency. Despite several months of discussions, the parties involved in the proposal couldn’t agree on the terms and conditions of the sale. Even accordingly, Delivery Hero kept the identities of potential buyers undisclosed.
Previous Speculations of Likely Buyers
German business experts previously speculated Grab, a major competitor of Delivery Hero, as a plausible buyer. This speculation emerged after information was disclosed stating Delivery Hero’s intentions of retaining the Foodpanda brand after experiencing a significant reduction of its stock price caused by unsuccessful negotiation reports.
Future Prospects and Potential for Profitable Growth in Asia Pacific
The leading company affirmed the potential for growth in the Asia Pacific region. Despite a stagnant Asian market last year owing to the easing of COVID curtailments, Delivery Hero achieved steady financial status in the region by the last quarter of 2023.
Delivery Hero’s Openness For Future Mergers and Acquisitions
According to our source, Delivery Hero showed a credible openness towards exploring mergers and acquisitions in the future that assure value creation for its shareholders, stressing on high assurance of successful closure. The decision to cease the sale talks will not affect the company’s financial guidance, reinstated earlier in February.
Recent Stake Sale in Deliveroo
Previously in January, our source revealed that Delivery Hero sold a 4.5% stake in Deliveroo, another reputed online food delivery service. This depicts the strategic measures taken by the company considering the evolving dynamics of the food delivery business in a post-pandemic world.
