Pango backs out of $175 million merger with Gett
Facing antitrust resistance, the mobility-tech deal unravels after a year of regulatory hurdles.
Pango has officially withdrawn its application to merge with Gett, following significant concerns raised by the Israeli Competition Authority. This move effectively preempts an expected formal rejection of the $175 million deal, which was signed a year ago.
The Competition Authority recently issued a letter of objections to both companies, clearly signaling its intention to oppose the merger. As first reported by Calcalist, the letter raised serious concerns that the merger would significantly harm competition in the market.
The Authority’s main concern was that a merger between the two leading players in their respective fields could force competitors, such as Cellopark and Yango, out of the market. While Pango engaged in discussions with the Authority to explore possible conditions that might allow the deal to proceed, the Commissioner ultimately rejected those proposals.
Pango operates primarily in the parking services market and also offers additional services such as public transportation and fuel payments. Gett is a leading player in the taxi and delivery sectors. The Competition Authority also expressed concerns about the extensive consumer data held by both companies, warning that combining these databases could further distort market competition.
Although the companies were summoned to a hearing where they were expected to present their case, it was widely believed that the chances of receiving approval after a year of regulatory scrutiny were slim. This led Pango to make the strategic decision to withdraw the merger request.
