TAIPEI (Taiwan News) — Uber has abandoned its bid to acquire Foodpanda's operations in Taiwan and will be required to pay a hefty termination penalty. 

Uber, the parent company of Uber Eats, has terminated its NT$31.28 billion (US$950 million) acquisition of Delivery Hero’s Foodpanda delivery business in Taiwan, per Reuters. The Fair Trade Commission decided in December to prohibit the deal as the combined market share of the two firms would have reached 90%, likely leading to Uber raising prices. 

Uber said it would not appeal the commission's decision. Uber will need to pay an approximately NT$8 billion termination fee.

The two companies announced the merger in May. In addition, they signed an agreement for Uber to purchase US$300 million worth of common stock newly issued by Delivery Hero, which is headquartered in Berlin, Germany. 

Delivery Hero told Reuters that the collapse of the merger would not affect the stock acquisition agreement.

Delivery platforms across Asia have seen a recovery in performance since a post-pandemic downturn. However, companies have been engaged in fierce discount battles to attract cost-conscious consumers, using thin margins to cope with the intense competition.

Uber, the parent company of Uber Eats, had originally eyed Foodpanda's fast delivery services as a means to expand its business presence.