Singapore-based ride-hailing and food delivery firm Grab is reportedly seeking a loan of up to $2 billion to support its potential acquisition of Indonesia’s GoTo Group. According to Bloomberg News, the so-called bridge loan could have a tenor of approximately 12 months. Talks with banks are still in the early stages, and details could change.

Ongoing Merger Talks Amid Market Speculation

The move comes amid ongoing speculation surrounding a possible merger between Grab and GoTo, which operates the ride-hailing and delivery platform Gojek. Last week, GoTo reiterated that there was no agreement with any party regarding a transaction after reports surfaced that Grab was moving forward with a potential buyout.

GoTo declined to comment on the matter, while Grab has not responded to media inquiries. The U.S.-listed firm is also considering alternative financing options, such as issuing bonds or equity, once the bridge loan is secured.

Potential $7 Billion Deal Faces Competition Concerns

Grab, backed by Uber Technologies, has been conducting due diligence and discussing the structure of a potential deal that could be valued at more than $7 billion. Talks between the two companies have been on and off, with previous discussions stalling due to competition concerns. If a deal were to proceed, it would mark one of the most significant tech acquisitions in Southeast Asia.

Singapore’s competition watchdog recently stated that it has not received any notification from either Grab or GoTo regarding a potential merger. Regulatory scrutiny is expected to play a key role in determining the feasibility of the acquisition, given the dominant positions both companies hold in Southeast Asia’s digital economy.

M&A Activity Gains Momentum in Asia

The acquisition talks are unfolding amid a surge in dealmaking activity across Asia as valuations become more attractive. Investors and dealmakers are actively pursuing opportunities, contributing to a strong mergers and acquisitions (M&A) financing pipeline. The region’s loan market, which had seen a decline over the past three years, is expected to recover in 2025.

Other major deals in Asia’s investment landscape include Blackstone’s efforts to raise at least $200 million through Citigroup for its acquisition of South City Mall in Kolkata, India. Meanwhile, Advent International is seeking around $300 million in financing for its purchase of contact lens maker Ginko International’s China operations.

What This Means for Grab and GoTo

Grab’s pursuit of capital suggests progress in the potential acquisition after previous hesitations. If successful, the deal could reshape the competitive landscape of Southeast Asia’s tech sector and solidify Grab’s dominance in the region’s ride-hailing and delivery markets.

PHOTO: SHUTTERSTOCK

This article was created with AI assistance.