April 1 (Reuters) - Singapore's competition watchdog had

looked into the likelihood of the now-collapsed talks between

Grab Holdings ( GRAB ) and Delivery Hero raising

worries about competition in the food delivery market, the

regulator said on Monday.

Germany's Delivery Hero had been looking to divest its

foodpanda business in some Southeast Asian markets and media

reports from September had said Singapore-based Grab could be a

potential buyer.

The Competition and Consumer Commission of Singapore (CCCS)

said it started an investigation into this potential tie-up in

early January.

Grab and foodpanda control about 91% of Singapore's $2.5

billion food delivery market, according to a report by research

firm Momentum Works, with Grab alone having a 63% market share.

The CCCS, however, closed its investigation on Feb. 23,

after Delivery Hero scrapped plans of a potential sale and Grab

said it was not pursuing any such deal.

The talks had collapsed in early February, media reports

said.

Grab and Delivery Hero did not immediately respond to

Reuters' requests for comment.