Uber Technologies has terminated its acquisition of Foodpanda in Taiwan, a subsidiary of Delivery Hero, as announced by the Germany-based company on Tuesday.

This decision comes approximately three months after Taiwan’s antitrust regulator, the Fair Trade Commission (FTC), blocked the deal due to concerns about competitive issues. The FTC had expressed concerns that if Uber were to acquire Foodpanda, its market share in Taiwan would increase to 90%, potentially leading to higher prices imposed by Uber.

In Taiwan’s food delivery market, Uber Eats and Foodpanda are the dominant players. According to recent reports, Foodpanda held a 52% market share from January 2022 to August 2023, while Uber Eats had a 48% share. Other food delivery companies, such as Foodomo and various fast-food delivery apps, hold a relatively small percentage of the market share.

As per the agreement signed on May 14, 2024, Uber is required to pay a termination fee estimated to be around $250 million.

Neither Uber nor Delivery Hero has immediately responded to a request for comment from TechCrunch.

When Uber initially announced its plan to acquire Foodpanda’s Taiwan division from Delivery Hero, it expected to complete the deal in the first half of 2025. This move was part of Uber Eats’ strategy to expand in Asia, specifically by strengthening its presence in Taiwan. The two companies had also entered into a separate agreement in which Uber agreed to purchase $300 million of newly issued ordinary shares from Delivery Hero.

The deal also marked Delivery Hero’s continued withdrawal from the market. At the time, Delivery Hero was attempting to sell its Southeast Asian operations, including those in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand, to an undisclosed third party. However, in September 2023, it ended these discussions, stating that the decision to terminate negotiations was made after careful consideration.

Delivery Hero’s food delivery division competes with Grab in Southeast Asia.

In September, its Foodpanda unit implemented a layoff aimed at streamlining operations ahead of a potential sale. This followed earlier staffing layoffs in 2022 and 2023.