Delivery Hero terminates talks on potential sale of foodpanda

Delivery Hero's ongoing negotiations for selling its foodpanda business in select Southeast Asian markets ended without a definitive agreement. Key markets affected include Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar, and Laos.

• Reason for Halt: The precise terms of the deal could not be finalized between Delivery Hero and the interested parties, whose identities were not publicly disclosed.

• Strategic Intent: The company's aim to offload foodpanda aligns with a broader strategy of attaining profitability without sacrificing growth amid mounting investor concerns over its financials.

• Speculated Buyer: While Delivery Hero refrained from naming the main negotiating party, earlier rumors suggested Grab was the likely candidate, particularly after negotiations reportedly faltered earlier in the month.

• Official Stance on Growth: Despite the setback, Delivery Hero's CEO, Niklas Östberg, remains optimistic about the Asia Pacific market's capacity for profitable scaling. He cites the company's positive EBITDA for the 2023 financial year as a sign of underlying strength.

Although the sale talks are off the table, Delivery Hero stays receptive to future M&A opportunities that offer shareholder value and have a high certainty of successful closure.