Singapore-based ride-hailing and delivery giant Grab Holdings Ltd is reportedly in discussions to secure a loan of up to US$2 billion (RM8.85 billion) to support its potential acquisition of Indonesian rival GoTo Group Inc, according to sources familiar with the matter.
The proposed bridge loan, which could have a 12-month tenure, is still in the early stages of negotiation with banks, and terms may change, the sources said. Neither Grab nor GoTo provided comments in response to media inquiries.
This development comes as mergers and acquisitions (M&A) activity gains momentum in Asia, with valuations becoming more attractive. The region’s loan market, which has faced a three-year slump, is expected to rebound in 2025, fueled by a rising pipeline of deal financing.
Other notable transactions include Blackstone Inc. working with Citigroup Inc. to raise at least US$200 million for its acquisition of South City Mall in Kolkata, India, and Advent International seeking approximately US$300 million to fund its purchase of contact lens maker Ginko International’s China operations.
Grab’s potential fundraising indicates that the long-anticipated acquisition is gaining traction after previous delays. The Uber-backed firm is advancing due diligence and structuring a deal that could exceed US$7 billion, according to Bloomberg.
Additionally, Grab is exploring a bond or equity issuance to replace the bridge loan once secured. However, the transaction hinges on the successful completion of the GoTo acquisition, the sources noted.
