Grab stated that it is not involved in any discussions.
Grab Holdings Ltd. has confirmed that it is not currently in negotiations to acquire Indonesian tech firm GoTo Group, signaling a pause in discussions over a potential $7 billion merger that could reshape Southeast Asia’s digital services landscape.
In a statement released Monday, the Singapore-based superapp provider stated, “The parties are not involved in any discussions at this time and Grab has not entered into any definitive agreements.” The company also reaffirmed its commitment to Indonesia, saying the country “continues to be an important” part of its mission as it works to serve local users, drivers, and merchants.
According to Bloomberg, the two Southeast Asian tech giants had previously explored a framework for a possible merger, but momentum had stalled in recent weeks. Regulatory hurdles, particularly from Indonesia’s competition watchdog, appear to have played a role in the slowdown. In May, Indonesian authorities raised concerns over potential monopoly risks and emphasized that any consolidation should not compromise market competition.
Grab’s shares dipped about 1% in pre-market trading following the news. Despite gaining 41% over the past year amid a push toward profitability, the company’s valuation remains well below its 2021 listing level. Grab went public through a merger with a special purpose acquisition company (SPAC) backed by Uber Technologies Inc., which still holds a stake in the company after exiting the region in 2018.
Per Bloomberg, Grab and GoTo have engaged in on-and-off talks over the years. Their combined market dominance in sectors like ride-hailing and food delivery has long raised antitrust flags, especially in core markets such as Indonesia and Singapore. A potential merger would unite the two largest players in the region, prompting fears of price hikes and job losses in Indonesia’s digital economy.
Adding another layer of complexity, Indonesia’s sovereign wealth fund Danantara has reportedly considered playing a role in the merger. Bloomberg reported that the fund’s involvement could be aimed at mitigating concerns over the sale of what many in Indonesia view as a national tech asset.
The political implications have not gone unnoticed. Some Indonesian officials have voiced apprehensions about a foreign company gaining control over GoTo, which could potentially reduce local innovation and export high-skilled jobs abroad. The impact on pricing for everyday services like ride-hailing and meal delivery — already essential in a strained economy — is another point of contention.
Source: Competition Policy International
