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Who stands to win or lose when Grab takes over Gojek
Analysts say a merger is increasingly likely. While institutional backers set to gain, millions of drivers and retail investors will likely lose out.
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A group of Gojek drivers are seen with Electrum electric motorcycles, part of GoTo's efforts to achieve its three sustainability goals. (GoTo/Henry)
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ingapore-based ride hailing and delivery giant Grab is reportedly advancing talks to acquire Gojek, its Indonesian rival under GoTo, with analysts saying a merger is increasingly likely. While institutional backers set to gain, millions of drivers and retail investors will likely suffer from the merger.
Though the merger plan surfaced several times in previous years, Grab's active push for capital-raising strongly suggested significant progress in what could become one of Southeast Asia's landmark tech acquisitions, Capital Asset Management investment analyst Martin Aditya told the The Jakarta Post on Tuesday.
“The deal will help GoTo reach profitability sooner,” Martin noted, “and will benefit both sets of shareholders. The reduced competition following the merger paves the way for increased profitability through operational efficiencies.”
Reports of Grab and GoTo reviving merger talks surfaced in February via Reuters, citing anonymous sources claiming discussions resumed in late 2024 after stalling, with investors eager to reach the deal in 2025.
Grab had been in talks for a potential acquisition valued at over US$7 billion and had begun due diligence, Bloomberg reported in March, citing anonymous sources.
To fund this potential acquisition, Grab is seeking a bridge loan of up to $2 billion with a tenor of about 12 months, although talks are still in the early stages and details could be subject to change. Grab is also considering a subsequent bond or equity offering to refinance the bridge loan.
“This deal is becoming harder to deny, and investors want exit eventually. The signs are clear and both companies will confirm it sooner or later, as the exit strategy is practically laid out,” capital market analyst Teguh Hidayat told the Post on Monday.
