On November 17, a media report said that Meituan is considering acquiring Delivery Hero's business in Southeast Asia to achieve geographical diversification of its business.。

Meituan has held talks with Delivery Hero about acquiring the Southeast Asian business of its brand Foodpanda, according to people familiar with the matter.。It is uncertain whether the discussions will lead to a deal, and other bidders may emerge。

Delivery Hero is a German multinational online food ordering and food delivery company headquartered in Berlin, Germany.。Founded in 2011, the company operates internationally in more than 70 countries in Europe, Asia, Africa, Latin America, South America and the Middle East, and works with more than 500,000 restaurants.。

Back in September, Delivery Hero said it planned to sell its operations under the foodpanda brand in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand as local business stagnated following the outbreak.。The company also said that the amount of the transaction is being negotiated, but did not disclose who the potential buyers are.。

Delivery Hero CEO Niklas Oestberg said in an interview this week that while the Asia business is the company's largest and most profitable division, growth in that business is slowing.。The total value of commodities in the Asian business fell 6% year-on-year in the third quarter..2% to $6.9 billion。

"Fat meat" attracts potential buyers

Foodpanda has a large share of Southeast Asia, with its business accounting for about 20% of the total value of goods in the region in 2022.。No matter who eats this "fat," in the local video distribution business can be quickly improved。

The first to focus on this piece of fat was Singapore-based company Grab Holdings Ltd..(hereinafter referred to as "Grab")。As Delivery Hero revealed its plans to sell, there were media reports that Grab was already in talks with Delivery Hero to buy Foodpanda's Southeast Asian business and broke the news that Grab's bid exceeded $1 billion.。

Grab is a leading application in Southeast Asia covering the delivery, mobile and digital financial services sectors。Grab serves more than 500 cities in 8 Southeast Asian countries (Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)。

In Grab's reported results for the third quarter ended September 30, 2023, the company reported that its revenue increased 61% year-over-year to 6.$1.5 billion。In the third quarter, Grab's adjusted EBITDA turned positive for the first time, reaching $29 million.。Grab, which gets most of its sales from its food delivery business, has also seen strong growth in its ride-sharing business in recent months.。

Grab is a fast-growing company.。It is estimated that if Grab can acquire Foodpanda's business in Southeast Asia, Grab's market share is expected to increase from 40-50% to more than 70%.。As a result, Grab immediately threw an olive branch when he heard that Delivery Hero was selling its Southeast Asian business.。

But now Grab's big contender has emerged。

Meituan, China's largest takeaway platform, operates in more than 2,800 cities in China, and its size is unmatched by Grab.。

In its second-quarter results through the end of June, Meituan posted its fastest revenue growth since 2021.。The company achieved revenue of 68 billion yuan in the second quarter, up 33.4%, exceeding analysts' expectations of $67.2 billion。Net profit of 4.7 billion yuan, net loss of 11 in the same period last year.Rmb1.6bn, year-on-year turnaround。

Moreover, as of June 30, 2023, Meituan held cash and cash equivalents and short-term financial investments of RMB27 billion and RMB93.2 billion, respectively.。

At present, has been firmly seated in China's takeaway industry "leading throne" Meituan is developing an ambitious "sea plan," and Southeast Asia is the first choice of Meituan "sea"。

On May 22, Meituan launched takeaway platform KeeTa in Hong Kong SAR。It is reported that KeeTa will be the first to start operations in Mong Kok and Tai Kok Tsui areas, followed by month-on-month expansion of new areas, and by the end of this year to complete the territory-wide coverage.。Investment bank Daiwa sees Hong Kong as Meituan's first pilot city before expanding into overseas markets such as Southeast Asia。

No matter who will spend on Delivery Hero's business in Southeast Asia, as Meituan expands overseas, the competition between Meituan and Grab and other takeaway platforms in Southeast Asia will eventually be staged, and who will have the last laugh will be tested by time.。