Grab Calls Off Plan to Acquire Singapore Taxi Operator Trans-Cab

By Kimberley Kao

Southeast Asian ride-hailing and delivery specialist Grab Holdings withdrew its plan to acquire private taxi operator Trans-cab Holdings, Singapore's competition watchdog said, after the regulator flagged concerns that the deal could be anticompetitive.

Both Grab, which would have made the buyout through its GrabRentals arm, and Trans-cab, informed the Competition and Consumer Commission of Singapore on Monday that they will no longer proceed with the proposed takeover, the commission said in a statement late Thursday.

"With the termination of the proposed acquisition, the parties have withdrawn their application to CCCS for a decision, and CCCS has accordingly ended its assessment of the proposed acquisition," it said.

Grab and Trans-cab didn't immediately respond to a request for comment.

Singapore-based Grab first announced the acquisition plan in July 2023, saying the takeover of Trans-cab's 2,500-vehicle fleet would help it grow its driver base, something the city-state has been struggling to recover since the Covid-19 pandemic. The shortage of drivers led to "higher fares as prices surge due to demand and supply imbalance," it said at the time.

Singapore's competition watchdog later raised concerns in October, finding that the deal could weaken Grab's rival ride-hailing platforms. It followed that up earlier this month by asking Grab and Trans-cab for solutions to address the competition concerns.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

July 26, 2024 00:15 ET (04:15 GMT)

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