Grab, the US-listed ride-hailing and food delivery company, is negotiating to acquire its Indonesian competitor GoTo in the second quarter of 2025.

The deal, which could be valued at approximately $7 billion, is still under discussion, with Grab working with financial advisers to finalize terms, according to sources familiar with the matter.

Both Grab and GoTo have declined to comment on the potential deal, and it remains subject to terms including financing arrangements, which Grab is currently negotiating with banks.

GoTo to Sell International Unit to Grab

As part of the proposed acquisition, GoTo will sell its international operations based in Singapore to Grab. In Indonesia, GoTo will transfer its entire operations, excluding its finance arm, to Grab.

These deal terms are still under negotiation and could change.

GoTo’s shares have risen by 20% year-to-date, bringing its market value to about $5.8 billion.

However, the valuation of $7 billion for the entire company is still under review.

Regulatory Scrutiny Looms Over Grab-GoTo Merger

Despite years of on-and-off discussions, previous merger talks between Grab and GoTo were halted due to concerns about competition in Southeast Asia.

Should the deal proceed, the merger would create a dominant entity in the ride-hailing industry, controlling around 85% of the $8 billion market in Southeast Asia, according to data from Euromonitor International.

The merger would also result in a combined market share of more than 91% in Indonesia and nearly 90% in Singapore.

Such a concentration of market power could lead to heightened scrutiny by regulators in these key markets.

Market Concerns Over Anti-Competitive Risks

David Zhang, an insights manager at Euromonitor International, stated that regulators in Indonesia and Singapore will likely place strict scrutiny on the merger.

He added that there’s a significant possibility that the deal could be blocked due to anti-competitive concerns.

However, some analysts believe that Indonesian regulators may take a more pragmatic approach, balancing the long-term benefits of strengthening the market with the potential risks of reduced competition.

PHOTO: NIKKEI ASIA/YUKI KOHARA

This article was created with AI assistance.