March 11 (Reuters) - Uber ( UBER ) has decided to terminate its agreement to acquire

Delivery Hero's Foodpanda business in Taiwan and will pay a termination fee of around

$250 million, the food delivery company said on Tuesday.

Uber ( UBER ) said in an emailed statement that it would not appeal the decision of the Taiwan Fair

Trade Commission.

Taiwan had in February blocked Uber's ( UBER ) $950 million purchase of Delivery Hero's Foodpanda

business on the island because of concerns it would be anti-competitive.

Taiwan's Fair Trade Commission said in December that the buyout of Uber's ( UBER ) main rival,

Foodpanda, would increase their combined market share to 90% on the island and could incentivize

Uber ( UBER ) to raise prices in the market.

In May 2024, Uber ( UBER ) and Delivery Hero announced the Taiwan deal, which included a separate

agreement for Uber ( UBER ) to purchase $300 million worth of newly issued shares of the German food

delivery firm.

Delivery Hero told Reuters that the termination of the Taiwan acquisition does not affect

the share purchase agreement.

Food delivery platforms in Asia have largely rebounded from a post-pandemic slowdown, but

the companies are grappling with intense competition and thin margins as they spend heavily on

discounts to retain cost-conscious customers.