Grab to buy Delivery Hero's Foodpanda Taiwan business for $600 million

By Tristan Veyet and Yantoultra Ngui

March 23 (Reuters) - Southeast Asia's biggest ride-hailing and delivery firm, Grab GRAB.O, said on Monday it would pay $600 million in cash for Delivery Hero's DHER.DE Foodpanda delivery business in Taiwan, in its first expansion outside the region.

The Taiwan purchase gives the Singapore-based company a sizeable delivery foothold beyond Southeast Asia in its pursuit of a broader expansion strategy built around artificial intelligence, newer services and selective overseas deals.

"This is a natural next step for Grab, as our experience in Southeast Asia is a direct fit for this market," Anthony Tan, Grab's group CEO and co-founder, said in a statement.

Grab said the deal, subject to regulatory approvals and other closing conditions, was expected to close in the second half of 2026, and was expected to contribute at least $60 million in incremental adjusted EBITDA in 2028.

MORE NEEDS TO BE DONE

Foodpanda in Taiwan generated about $1.8 billion in gross merchandise value in 2025 and was profitable on an adjusted EBITDA basis before Delivery Hero group cost allocations, it added.

In February, Reuters reported that Grab was targeting annual revenue growth of more than 20% over the next three years and aimed to triple EBITDA to $1.5 billion by 2028.

At the time Alex Hungate, its president and chief operating officer, said the company had taken "toeholds" outside Southeast Asia, including its acquisition of U.S. wealth platform Stash.

Grab reiterated its 2026 adjusted EBITDA guidance of $700 million to $720 million and said the transaction would be accretive to its 2026 group revenue forecast of $4.04 billion to $4.10 billion.

The company said it aimed to complete migration of users, merchants and drivers to the Grab app by early 2027.

Delivery Hero CEO Niklas Oestberg said the Taiwan divestment was "a key first step" in the group's strategic review.

The deal proceeds will go to repay debt, the company said in a separate statement. Shares in the group rose 2.8%.

Shareholders, most notably Aspex Management, have pressed Delivery Hero for progress in the strategic review of activities, as its shares have lost nearly a third of their value this year.

"Starting to divest assets is a positive, but Taiwan in itself is completely insufficient, as the company continues to rack up regulatory fines and mismanage capital via inefficient financing arrangements," Aspex said in a statement.

"A lot more needs to be done if the management wants to regain trust from the capital markets."