GRAB Holdings and GoTo Group have accelerated merger talks and are targeting a deal this year, seeking to end years of losses in South-east Asia’s competitive Internet market.
The takeover could see a valuation of over US$7 billion, Bloomberg reported. One scenario being discussed is an all-stock purchase valuing shares of Indonesia’s GoTo at more than 100 rupiah apiece, according to people familiar with the situation. That would represent a premium of about 20 per cent over its current stock price level.
Discussions have intensified in recent weeks, and the companies see 2025 as an opportune year for a deal, according to sources familiar with the situation. The unprofitable firms – the two biggest ride-hailing providers in South-east Asia – have held on-and-off talks for years, targeting a combination that would reduce costs and competitive pressure in the region of more than 650 million consumers.
Singapore’s Grab, backed by Uber Technologies, and Indonesia’s GoTo, whose investors include Softbank Group, have both made progress towards profitability following their stock-market debuts in recent years. But competition for users has kept prices in check and squeezed margins.
In the years past, hurdles for a merger have included disagreements between the parties as well as potential antitrust obstacles caused by the companies’ dominance in markets such as Indonesia and Singapore. And the current talks may not lead to a transaction at all, said the sources, asking not to be identified as the matter is private.
A GoTo spokesperson declined to comment, while Grab representatives had no immediate comment when contacted by Bloomberg News. DealStreetAsia earlier reported the companies’ target of reaching a deal this year.
Shares of GoTo advanced as much as 6.2 per cent in Jakarta on Tuesday (Feb 4), bringing their gain this year to more than 20 per cent. Grab has declined about 4 per cent in New York so far in 2025. Together, the companies’ market value approaches US$25 billion, rivalling the capitalisation of some of the biggest companies in South-east Asia.
While discussing a combination, the companies each have struck smaller deals in a bid to improve their finances. Grab has bought a supermarket chain in Malaysia and a reservation app in Singapore, while GoTo a year ago agreed to relinquish control of its loss-making e-commerce arm to ByteDance’s TikTok in a US$1.5 billion deal.
Meanwhile, the companies’ growth has cooled dramatically from triple-digit rates in years past as customers in the region curb spending to cope with elevated inflation and interest rates. Demand is increasing at a slower pace, as their customer base expands and consumers are less eager to hail a ride or get food delivered to their door in a challenging macroeconomic climate. BLOOMBERG
