SINGAPORE: A deal for ride-hailing platform Grab to take over taxi operator Trans-cab will no longer go ahead, said Singapore's competition watchdog on Thursday (Jul 25).
The Competition and Consumer Commission of Singapore (CCCS) said it was notified by Grab and Trans-cab on Monday that the two parties would not be proceeding with the proposed acquisition.
CCCS started an in-depth review of the deal in January after an initial review had found that the tech firm’s proposed acquisition might create barriers for rival platforms. The proposed acquisition was first announced last July.
The watchdog said earlier this month that drivers and passengers could face higher prices if competition constraints on Grab from rival platforms are weakened.
“With the termination of the proposed acquisition, the parties have withdrawn their application to CCCS for a decision, and CCCS has accordingly ended its assessment of the proposed acquisition,” said the competition watchdog on Thursday.
It added that Grab and Trans-cab “expressed their respect for the regulatory process and their appreciation to CCCS for the thorough review”.
CCCS noted Grab’s "commitment to operating in compliance with competition laws and their intention to contribute positively to the competitive landscape in Singapore".
“CCCS encourages businesses with acquisition plans to engage CCCS at an early stage of the process if they assess that their plans are likely to raise competition concerns,” it said.
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The Competition and Consumer Commission of Singapore (CCCS) said it was notified by Grab and Trans-cab on Monday that the two parties would not be proceeding with the proposed acquisition.
CCCS started an in-depth review of the deal in January after an initial review had found that the tech firm’s proposed acquisition might create barriers for rival platforms. The proposed acquisition was first announced last July.
The watchdog said earlier this month that drivers and passengers could face higher prices if competition constraints on Grab from rival platforms are weakened.
“With the termination of the proposed acquisition, the parties have withdrawn their application to CCCS for a decision, and CCCS has accordingly ended its assessment of the proposed acquisition,” said the competition watchdog on Thursday.
It added that Grab and Trans-cab “expressed their respect for the regulatory process and their appreciation to CCCS for the thorough review”.
CCCS noted Grab’s "commitment to operating in compliance with competition laws and their intention to contribute positively to the competitive landscape in Singapore".
“CCCS encourages businesses with acquisition plans to engage CCCS at an early stage of the process if they assess that their plans are likely to raise competition concerns,” it said.
Continue reading...