Grab Strikes $40B Deal In Biggest Ever Blank-Check Merger

Southeast Asia’s largest ride-hailing and food delivery firm Grab Holdings on Tuesday, April 13, confirmed its US$40 billion merger with a publicly-listed shell company backed by Altimeter Capital, marking the biggest ever deal with a blank check firm.

The merger, the biggest blank-check company deal ever, underscores the frenzy on Wall Street as shell firms have raised $99 billion in the United States so far this year after a record $83 billion in 2020.

Singapore-based Grab’s agreement with a special purpose acquisition company (SPAC) backed by Altimeter Capital includes a more than $4 billion private investment in public equity by investors including BlackRock, Fidelity International, Janus Henderson Investors and Temasek Holdings.

The offering is led by $750 million from funds managed by Altimeter Capital. The transactions will provide Grab with about $4.5 billion in cash proceeds.

Grab said its decision to become a public company was driven by a strong financial performance in 2020, despite the pandemic. Reuters earlier reported that Grab would announce the deal on Tuesday.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.