The Competition and Consumer Commission of Singapore (CCCS) announced on Wednesday that it has initiated an in-depth review of Grab Holdings’ (GRAB) proposed acquisition of Trans-cab, the third-largest taxi operator in Singapore.
In July, the Nasdaq-listed ride-hailing company Grab revealed its intention to acquire Trans-cab in a deal that would combine Grab’s fleet with Trans-cab’s more than 2,500 taxis and private-hire vehicles.
The CCCS’s comprehensive review follows the parties’ submission of necessary documents on January 25, after the regulator initially expressed concerns that the deal might raise competition issues.
“Upon completing the review, the CCCS will decide whether to approve or reject the proposed acquisition,” stated the commission.
The CCCS found Grab’s proposed two-year plan to address competition concerns and self-policing monitoring mechanism inadequate. During the review process, Grab is permitted to propose revised commitments that could potentially alleviate the regulator’s concerns.
The decision to initiate an in-depth review underscores the CCCS’s commitment to ensuring fair competition in Singapore’s ride-hailing and taxi markets, and its determination to thoroughly assess the potential implications of Grab’s acquisition of a major industry player.
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