Grab Reportedly Seeking $2 Billion to Acquire Rival GoTo
Singapore-based ride-hailing/delivery platform Grab is reportedly trying to raise funds to acquire rival GoTo.
The company is in discussions to obtain a bridge loan of up to $2 billion for the deal, Bloomberg News reported Wednesday (March 26), citing sources familiar with the matter. Grab is also considering a bond or equity takeout after securing the loan, one of the sources said. However, the deal is contingent on the company successfully acquiring the Indonesia-based GoTo.
The Bloomberg report notes that Grab’s capital-raising plans indicate that the deal is proceeding after some hesitation. The company is conducting due diligence and is in negotiations about the structure of the acquisition, which could be worth upwards of $7 billion, the report added.
The news follows comments earlier this month from GoTo CEO Patrick Walujo that his company was still weighing a merger with Grab.
“I will always be open to anything that is enhancing our shareholders’ return … in the long term,” Walujo said in an interview with the Financial Times (FT).
When asked if he would consider a deal that involved the whole company or parts of it, the executive added: “This is something that we need to really consider. Because the other thing that’s unique about GoTo is that we are a national champion.”
Walujo added that GoTo had a responsibility to its workers, and to developing tech capabilities within its home country.
Reports first emerged in 2024 that GoTo — operator of the Gojek ride-hailing platform and partial owner of eCommerce service Tokopedia — was in talks with Grab, although the companies denied the negotiations were taking place.
As observers have noted, any deal that combined the two companies would likely draw the attention of regulators, as it would involve two of the largest ride-hailing/food delivery services in Southeast Asia, with a combined market value of $23 billion.
The deal, if it proceeds, would come about in a climate that has not been kind to the food delivery sector. For example, Grubhub announced recently that it was laying off 20% of its workforce after being sold to meal delivery service Wonder.
“In order to achieve our ambition, we must prioritize the right work and execute with speed and conviction by reducing management layers, bringing leaders closer to the business, and removing duplication,” Howard Migdal, the firm’s chief executive, said in a message to employees.
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