Possible discussions are currently underway in Indonesia regarding a potential merger or acquisition involving Grab, a ride-hailing and food delivery company, and its competitor GoTo, according to a statement made by the presidential spokesperson on Friday.
The Indonesian government sees the ride-hailing sector as a strategic factor in generating jobs and boosting the economy. Gojek, a subsidiary of GoTo, alone employs more than 3.1 million online riders. Both Grab and GoTo have long been major players in the Indonesian market.
If a merger or acquisition does take place, the resulting entity would command a staggering market share of over 91 per cent in Indonesia, based on information provided by data analytics firm Euromonitor International.
An official announcement regarding the possible merger or acquisition will be made shortly, according to Prasetyo Hadi, an Indonesian government spokesperson.
“Online riders are the heroes of our economy, propelling it forward,” Hadi declared.
There has been no immediate comment from Grab or GoTo in response to request for statements.
Previous reports suggested that Grab, which is listed on Nasdaq, was planning to negotiate a deal to acquire GoTo, a smaller rival, in the second quarter of this year and had engaged advisers to assist with the proposed acquisition. According to a source close to the matter, such a deal could value GoTo at approximately US$7 billion.
As per its 2024 annual report, GoTo is 73.90 per cent owned by foreign investors, including SoftBank Group and Taobao China Holding, a subsidiary of China’s Alibaba Group. The remaining stakes are held by Indonesian investors.
What is the potential impact of Grab and GoTo’s merger or acquisition on the Indonesian market?
If Grab and GoTo merge or if one acquires the other, the resulting entity would control over 91% of the Indonesian market, according to data from Euromonitor International.
Who are the main investors in GoTo?
Foreign investors, including SoftBank Group and Taobao China Holding, own 73.90% of GoTo. The remainder is owned by Indonesian investors.
What was GoTo’s potential value earlier this year?
Earlier this year, a source close to the matter mentioned that a potential deal could value GoTo at around US$7 billion.
