(Reuters) – Nasdaq-listed ride hailing company Grab’s deal to buy Singapore’s private taxi firm Trans-cab Holdings is likely to result in substantial lessening of competition in the local market, the city-state’s competition watchdog said on Thursday.
Southeast Asian firm Grab had in July 2023 agreed to buy Singapore’s third-largest taxi operator without giving out a specific deal value though local media had then speculated the deal could be valued at around S$100 million ($74 million).
The Competition & Consumer Commission of Singapore said in a statement on Thursday that ride-hail platforms which operate as rivals to Grab would be deprived of drivers who work for Trans-cab, in case the deal goes through.
The deal might thereby result in a “greater degree of ‘stickiness’ of Trans-cab drivers to Grab’s ride-hail platform”, the regulator said, adding the proposed acquisition might potentially reduce usage of Grab’s rivals.
Grab and Trans-cab did not immediately respond to Reuters’ requests for comments.
($1 = 1.3473 Singapore dollars)
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Mrigank Dhaniwala)
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