China-based food delivery giant Meituan is reportedly exploring a potential acquisition of Delivery Hero SE’s business in Southeast Asia, Bloomberg reports. According to people familiar with the matter, it is said that the company is showing interest to diversify beyond its domestic market
In case you missed it, food delivery company Delivery Hero said in September that it is in talks to sell part of its operation in Southeast Asia, where growth has stagnated since COVID-19 lockdowns eased. The potential deal aims to divest its Foodpanda brand in Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar and Laos. It was initially reported that the company’s closest competitor in the region, Grab Holdings Ltd, is the likeliest bidder for its business.
For those who are unfamiliar, Meituan has become the largest food delivery platform in China, accounting for the largest market share in the country by revenue. Founded in 2010, it operates in more than 2,800 cities and counties in the country, and had recently established a new Hong Kong-based food delivery brand KeeTa back in May.
Bloomberg notes that there’s no certainty the negotiation will guarantee a transaction, and other potential bidders could emerge. But should the deal pull through, Meituan’s expansion into Southeast Asia would present a challenge for Grab Holdings Ltd, as the China-based food delivery giant would be a much bigger competitor than its current regional rivals. Neither Meituan or Grab are providing any comment regarding the matter, the publication said.
(Source: Bloomberg)
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