April 1 (Reuters) - Singapore's competition watchdog had looked into the likelihood of the now-collapsed talks between Grab Holdings 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. (Reporting by Archishma Iyer in Bengaluru and Yantoultra Ngui in Singapore; Editing by Savio D'Souza)