Grab-GoTo Merger Motive: Eliminating Competition or Creating Monopoly?
Grab Holdings Ltd and GoTo Group are reportedly reinitiating talks for a potential merger, as reported by Bloomberg on Feb 9. This merger is seen as a strategic move to mitigate both companies' prolonged losses due to intense competition over the years. According to Bloomberg sources, the merger is still in the early stages of discussion.
The combined entity of Grab and GoTo holds significant potential, catering to diverse transportation and food delivery needs for 650 million people in Southeast Asia. One potential corporate action being considered is Grab acquiring GoTo shares through cash, stocks, or a combination of both. This option becomes feasible with the appointment of Patrick Walujo as the GoTo Chief Executive Officer.
In response to these developments, GoTo's Corporate Communications representative, Sinta Setyaningsih, stated that there are currently no discussions. "We can't respond to market rumors," she told Republika on Feb 11. Mayang Schreiber, Grab Indonesia's Chief Communications Officer, echoed a similar sentiment: "We don't comment on rumors or circulating speculations."