Shares of PT GoTo Gojek Tokopedia Tbk (GOTO), a prominent ride-hailing service provider, experienced a significant drop on February 5, 2025, following the company’s dismissal of merger rumors with its rival, Grab Holdings Ltd. At 09:38 WIB, GOTO’s stock fell by 4.6%, bringing the price down to Rp83 per share, with a total transaction value of Rp552.02 billion.

This decline came after a market surge the previous day, where GOTO’s stock rose by 7.41% in response to the speculation regarding a potential merger with Grab. The company, however, clarified the rumors, emphasizing that no such agreement or transaction had taken place. Corporate Secretary of GOTO, RA Koesoemohadiani, confirmed in an official statement that the rumors were purely speculative.

"The company would like to clarify that there is no agreement with any party for a merger, as reported in the media," said Koesoemohadiani during a public disclosure on February 4, 2025.

The merger rumors initially suggested that Grab might be considering acquiring GoTo Group, with an estimated value of over USD 7 billion (approximately Rp114.52 trillion). Sources indicated that the discussions included an option to acquire GoTo shares, with the price per share exceeding Rp100, reflecting a premium of about 20% above the current share price of GoTo.

Grab and GoTo, both significant players in Southeast Asia's online transportation services, have explored potential merger discussions in the past to reduce operational costs and address the intense competition in the region, which has over 650 million consumers. Both companies have made strides towards profitability since listing on the stock exchange, although competition remains fierce, pressuring prices and reducing profit margins.

While the talks between Grab and GoTo intensified recently, it is unclear whether this new round of discussions will ultimately lead to an agreement. Past merger talks had faltered due to conflicting interests between the two companies and potential regulatory challenges, particularly in countries like Indonesia and Singapore. Sources from Bloomberg indicated that these talks have not yet resulted in a finalized deal.

Despite the recent developments, both companies are still focused on becoming more profitable, with significant investor backing, including Uber Technologies Inc. for Grab and SoftBank Group Corp. for GoTo. The situation remains fluid, and it is uncertain whether further merger discussions will continue or if both companies will maintain their current trajectories independently.

SOURCE: IDX CHANNEL | PHOTO: UZONE

This article was created with AI assistance.