24/03/2026

BIZ & FINANCE TUESDAY | MAR 24, 2026

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Grab to buy Foodpanda Taiwan for US$600 million

Japanese firms agree to 5.26% wage hike TOKYO: Japanese companies have agreed to raise wages by more than 5% for a third consecutive year, early results from annual labour talks showed yesterday, reflecting sustained gains in pay that policymakers see as key to fostering durable economic growth. Rengo, Japan’s largest labour union umbrella group with seven million members, said its preliminary tally showed an average wage hike of 5.26% for this year. That compares with last year’s initial reading of 5.46%, which was later revised down in stages to a final 5.25% – still the biggest pay rise in 34 years. Final figures typically come in lower than preliminary tallies as wage agreements at smaller firms, which tend to offer more modest increases, are incorporated later in the process. Rengo’s member unions are seeking an average hike of 5.94%, slightly below last year’s demand of 6.09%. Many major companies including Toyota Motor, Hitachi and NEC concluded their negotiations last week and agreed to meet union demands in full, offering large pay increases for another year as competition for workers remains intense. While this year’s wage talks have so far been spared major damage from surging oil prices and supply chain disruptions driven by the Middle East conflict, economists say heightened uncertainty could make management at smaller firms with thinner margins more cautious. Some analysts said higher oil prices and their impact on inflation could intensify upward pressure on wages. An oil-spike-led boost to inflation would erode real wages, said Kentaro Koyama, chief economist for Japan at Deutsche Securities. “This could intensify workers’ demands for wage increases to protect their living standards” potentially reinforcing a cycle of rising wages and prices, he said. Despite large increases in nominal pay in recent years, real wages have struggled to turn positive, depressing household purchasing power as inflation has outpaced pay gains. The wage talks are being closely watched by the Bank of Japan, which views broad and sustained pay growth as key to bolstering consumption and justifying further rate hikes. – Reuters Thailand must submit comments to US by April 15 in trade probe BANGKOK: Thailand must submit written comments to the United States on the US Section 301 trade investigation by April 15, the Commerce Ministry said yesterday. The country risks facing a tariff if it fails to defend its case, Chotima Iemsawasdikul, director-general of the Department of Trade Negotiations, told a briefing. Thailand is among 16 countries the US said would be subject to investigation under Section 301 of the Trade Act of 1974. The investigation of Thailand covers excess production capacity in sectors such as autos, machinery parts, fish, fish oil, animal feed and garments, and a separate case on imports of goods made with forced labour, with no specific source country identified, Chotima said. The country remains in discussions with the US following the original joint statement on tariff and non-tariff issues, she said. Thai goods had been hit with a 19% US tariff, which has now been replaced by Washington’s new global tariff. The Thailand-EU free-trade agreement talks are halfway through, Chotima said. – Reuters

of US$4.04 billion to US$4.10 billion. The company said it aimed to complete migration of users, merchants and drivers to the Grab app by early 2027. Delivery Hero CEO Niklas Oestberg said the Taiwan divestment was “a key first step” in the group’s strategic review. The deal proceeds will go to repay debt, the company said in a separate statement. Shares in the group rose 2.8%. Shareholders, most notably Aspex Management, have pressed Delivery Hero for progress in the strategic review of activities, as its shares have lost nearly a third of their value this year. “Starting to divest assets is a positive, but Taiwan in itself is completely insufficient, as the company continues to rack up regulatory fines and mismanage capital via inefficient financing arrangements,” Aspex said in a statement. “A lot more needs to be done if the management wants to regain trust from the capital markets.” – Reuters

Grab said the deal, subject to regulatory approvals and other closing conditions, was expected to close in the second half of 2026, and was expected to contribute at least US$60 million in incremental adjusted EBITDA in 2028. Foodpanda in Taiwan generated about US$1.8 billion in gross merchandise value in 2025 and was profitable on an adjusted EBITDA basis before Delivery Hero group cost allocations, it added. In February, Reuters reported that Grab was targeting annual revenue growth of more than 20% over the next three years and aimed to triple EBITDA to US$1.5 billion by 2028. At the time Alex Hungate, its president and chief operating officer, said the company had taken “toeholds” outside Southeast Asia, including its acquisition of US wealth platform Stash. Grab reiterated its 2026 adjusted EBITDA guidance of US$700 million to $720 million and said the transaction would be accretive to its 2026 group revenue forecast

SINGAPORE: Southeast Asia’s biggest ride-hailing and delivery firm, Grab, said yesterday it would pay US$600 million (RM2.4 billion) in cash for Delivery Hero’s Foodpanda delivery business in Taiwan, in its first expansion outside the region. The Taiwan purchase gives the Singapore-based company a sizeable delivery foothold beyond Southeast Asia in its pursuit of a broader expansion strategy built around artificial intelligence, newer services and selective overseas deals. “This is a natural next step for Grab, as our experience in Southeast Asia is a direct fit for this market,” Anthony Tan, Grab’s group CEO and co-founder, said in a statement. o Company expands into ninth market but first outside Southeast Asia

A Grab signage is seen at their office in Singapore. – REUTERSPIC

Tokio Marine to form partnership with Berkshire Hathaway TOKYO: Tokio Marine Holdings Inc said yesterday it would form a strategic partnership with Warren Buffett’s Berkshire Hathaway by initially selling a 2.49% stake through a third-party allotment of treasury shares. risk capacity that the partnership makes possible to pursue growth opportunities, while Berkshire’s core reinsurance entity, National Indemnity, will gain access to Tokio Marine’s global insurance portfolio, Tokio Marine said in a filing. billion) to buy back its own shares to prevent dilution for existing shareholders. Following the initial share allocation to National Indemnity, any additional

acquisition of Tokio Marine’s shares are expected to be made primarily through the open market, Tokio Marine said in a filing. National Indemnity will agree not to buy more than 9.9% of Tokio Marine’s outstanding shares without prior approval from the latter’s board, the statement said. – Reuters

The two firms will also execute joint investments globally, including mergers and acquisitions, Tokio Marine added. Tokio Marine said it would use the proceeds of up to ¥287.4 billion (RM7.1

Berkshire Hathaway in 2019 kicked off a number of investments in Japanese trading companies and the firm has increased its stakes multiple times since then. Tokio Marine expects to use the additional