The U.S.-based company Grab, which operates in ride-sharing and food delivery sectors, plans to acquire its smaller competitor GoTo from Indonesia in the second quarter, according to two sources familiar with the situation.
The Singapore-based company Grab has enlisted advisers for the potential transaction, according to two sources who also mentioned that the agreement hinges on conditions like funding, where discussions between Grab and financial institutions are ongoing, revealed one source.
Grab and GoTo both refused to comment.
According to an independent source familiar with the situation, Grab is considering acquiring GoTo’s business operations for approximately $7 billion. Data from LSEG indicates that GoTo, which is listed in Jakarta, has seen its stock price increase by 19% this year, resulting in a current market valuation of about $5.8 billion.
Shares of Grab on the Nasdaq have increased by 2.4% year-to-date, valuing the company at almost $20 billion, as per LSEG data.
Two independent sources close to the situation revealed that GoTo plans to divest its overseas division based in Singapore to Grab. Additionally, in Indonesia, GoTo intends to dispose of all its operations apart from its financial services segment to Grab, as mentioned by one of these sources.
Grab and GoTo both refused to comment.
According to an independent source familiar with the situation, Grab aims to acquire GoTo’s business for approximately $7 billion. Data from LSEG indicates that GoTo, which is listed in Jakarta, has seen its share price increase by 20% this year, valuing the company at roughly $5.8 billion.
Shares of Grab on the Nasdaq have increased by 2.4% year-to-date, resulting in a market capitalization of almost $20 billion, as per LSEG data.
GoTo plans to divest its overseas division based in Singapore to Grab, according to two independent sources acquainted with the situation. Additionally, one of these sources noted that within Indonesia, GoTo intends to dispose of all its operations apart from its financial sector to Grab.
The analyst from Indonesia’s BRI Danareksa Sekuritas, Niko Margaronis, who specializes in covering GoTo, suggested that Indonesian regulators might take a more practical stance when evaluating a possible merger. They could consider the advantages of bolstering current market participants and promoting enduring economic growth.
Antitrust investigations have become much more intense due to the escalating cost of living, which is exacerbated by an unstable global economic climate.
President Donald Trump’s import taxes.
In March, Uber ended its $950 million attempt to acquire Delivery Hero’s Foodpanda operation in Taiwan when the country rejected the proposal due to fears of anti-competition and potential price hikes encouraged by Uber.
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