Grab Vietnam misses deadline to submit documents on Uber merger deal

By Anh Minh   April 4, 2018 | 11:33 am GMT+7
Grab Vietnam misses deadline to submit documents on Uber merger deal
A passenger of Grab bike fixes her helmet next to Uber driver at Manggarai train station in Jakarta, Indonesia, March 26, 2018. Photo by Reuters/Beawiharta

The company has asked Vietnam's Competition Authority to push the deadline back by three days.

Ride-hailing firm Grab has failed to meet the Vietnam Competition Authority (VCA)'s deadline to submit documents regarding its deal to acquire rival Uber’s Southeast Asian operations, according to a representative of the VCA.

The deal, announced last week, has raised concerns that Grab will gain a monopoly in Vietnam, prompting the VCA to demand the company to provide reports on the merger by Tuesday.

Grab has asked for and been allowed to have this deadline pushed back to Friday.

Should the company fail to meet this second deadline, the VCA will take action to ensure the country's Competition Law is abided by to protect the rights and interests of consumers, the representative said.

Vietnam's Competition Law from 2004 requires that all mergers and acquisitions (M&As) that result in a company gaining over 30 percent of market share must be reported to competition authorities. M&As that result in a company gaining over 50 percent of market share are restricted, and can only be completed with permission from authorities.

In addition to Vietnam, Singapore, Malaysia and the Philippines are also reviewing the deal over suspicions that competition laws have been infringed.

Ride-hailing firm Uber Technologies Inc announced it had agreed to sell its Southeast Asian business to bigger regional rival Grab on Monday, marking the U.S. company’s second retreat from an Asian market. The app company will pack its bags and leave Vietnam on April 8.

Uber will take a 27.5 percent stake in Singapore-based Grab, and Uber CEO Dara Khosrowshahi will join Grab’s board. Grab was last valued at an estimated $6 billion.

 
 
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