U.S.-listed ride-hailing and food delivery giant Grab is reportedly working towards acquiring Indonesian rival GoTo, with the deal expected to materialise in the second quarter, according to sources familiar with the matter. Singapore-based Grab has engaged advisors to facilitate the proposed acquisition, which remains contingent on financing arrangements currently being discussed with banks.
Although neither Grab nor GoTo has officially commented on the potential merger, sources estimate the transaction could value GoTo’s businesses at around USD 7 billion. GoTo’s shares, listed on the Jakarta Stock Exchange, have risen by 20% year-to-date, bringing its market value to approximately USD 5.8 billion, according to LSEG data. In contrast, Grab’s shares on Nasdaq have gained 2.4% this year, pushing its market capitalisation to nearly USD 20 billion.
As part of the proposed deal, GoTo would divest its international unit in Singapore to Grab, while its Indonesian operations—excluding its finance arm—would also be transferred. Industry analysts suggest that Indonesian regulators may take a pragmatic stance on the merger, given the potential long-term economic benefits of consolidating existing players.
However, the acquisition may face heightened antitrust scrutiny, particularly against the backdrop of increasing global economic challenges and protectionist measures, such as U.S. tariffs. Recent developments, including Uber’s failed USD 950 million bid for Delivery Hero’s Foodpanda in Taiwan due to anti-competitive concerns, illustrate the regulatory hurdles Grab might encounter.
Niko Margaronis, an analyst at Indonesian brokerage BRI Danareksa Sekuritas, noted that regulators would likely weigh the potential for strengthened market players against competition concerns. As the region navigates economic uncertainty, the strategic acquisition could position Grab to further solidify its presence in Southeast Asia’s ride-hailing and food delivery markets.
–Reuters
