Grab no longer buying Trans-cab

Grab Holdings Limited has dropped its plan to acquire Singapore's third-largest taxi operator, Trans-cab Holdings Ltd., through its subsidiary GrabRentals Pte. Ltd.

The companies notified the Competition and Consumer Commission of Singapore (CCCS) of their decision not to proceed with the proposed acquisition on Jul. 22, said CCCS in a Jul. 25 media release.

Withdrew after CCCS raised competition concerns

The withdrawal came 11 days after CCCS ruled in a provisional decision on Jul. 11 that it believes Grab's proposed acquisition will infringe section 54 of the Competition Act 2004, which prohibits anti-competitive mergers.

This is because the proposed acquisition will "significantly weaken" rival ride-hail platforms in Singapore, thereby making it more likely for Grab to "entrench and strengthen [its] already dominant position".

As a result, drivers and passengers may face higher commissions and fees net of incentives as well as fewer choices for ride-hail platform services, said CCCS.

CCCS ends assessment for proposed acquisition

CCCS said it had ended its assessment of the proposed acquisition accordingly after Grab, Grab Rentals, and Trans-cab "have withdrawn their application to CCCS for a decision".

The commission added the companies "expressed their respect for the regulatory process and their appreciation to CCCS for the thorough review" in their letter to CCCS.

The statement read:

"CCCS notes 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."

Grab just acquired Chope

Earlier this week, Grab made headlines after successfully acquiring Singapore-based restaurant reservation platform Chope for an undisclosed amount.

After the acquisition, Grab will take over Chope's operations in Singapore, Indonesia, and Thailand.

In a statement to Mothership, a Grab spokesperson said that the addition of Chope's products and services will provide "more synergies" for Grab's merchant-partners, who are mostly "small and medium-sized businesses who do not have the same resources or know-how that big F&B brands have".

The acquisition will also help Grab's merchant-partners capture online-to-offline opportunities, added the spokesperson.

Top images via Grab, Trans-cab & Canva