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Grab and GoTo Engage in Advanced Merger Talks to Tackle Persistent Losses

By  |  February 4, 2025

Southeast Asian ride-hailing and food delivery platform Grab is in advanced negotiations to merge with Indonesian competitor GoTo, sources familiar with the matter revealed to Reuters. The discussions, which resumed in December 2024 after a brief hiatus, are part of an effort to consolidate resources as both companies strive to address ongoing financial challenges, according to Reuters.

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    The talks, initially pursued in previous years, have faced setbacks in the past, with earlier negotiations failing to reach a conclusion. However, this new round of talks has garnered attention as investors push for a resolution in 2025. While the outcome remains uncertain, the sources emphasized that a merger deal could be reached, but cautioned that it is not a certainty, as similar discussions in prior years had fallen apart. Due to the confidential nature of the talks, the sources requested anonymity, per Reuters.

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    In reaction to news of the discussions, GoTo’s shares, listed in Jakarta, saw a significant boost, rising 7.4%. Meanwhile, Grab’s stock experienced an 8.8% jump in premarket trading. The combined market value of the two companies now stands at nearly $25 billion, according to Reuters.

    Despite the positive market reaction, GoTo issued a statement on Tuesday, denying any ongoing merger talks with Grab. The company clarified in a filing that it was not in discussions with any party regarding a potential merger. GoTo further stated that it had no major corporate action plans for the upcoming year, except for the continuation of share buybacks.

    GoTo’s financial landscape has also been shaped by significant moves in the past year, including its e-commerce unit, Tokopedia, being acquired by TikTok. In December 2023, TikTok took a 75% controlling stake in Tokopedia through a deal valued at $1.5 billion.

    Source: Reuters