Grab ends bid to buy Trans-Cab in wake of ruling by watchdog

CCCS had said the deal was likely to reduce competition, thereby flouting antitrust laws

- Kok Yufeng

Ride-hailing giant Grab’s year-long bid to purchase taxi operator Trans-Cab has ended, with the parties telling Singapore’s competition watchdog that they will no longer be proceeding with the proposed acquisition.

This comes two weeks after the Competition and Consumer Commission of Singapore (CCCS) issued its provisional ruling on the deal, saying that it was likely to lead to a substantial reduction of competition in the ride-hailing market, thereby infringing Section 54 of the Competition Act, which prohibits anti-competitive mergers.

In a statement on July 25, CCCS said Grab and Trans-Cab have withdrawn their application to the watchdog for a decision on the acquisition. Accordingly, CCCS has ended its assessment of the proposed deal.

CCCS said Grab and Trans-Cab had expressed in a letter their respect for the regulatory process and their appreciation to the competition watchdog for the thorough review. CCCS also noted Grab’s commitment to operating in compliance with competition laws, and the company’s intention to contribute positively to the competitive landscape here.