As speculation mounts over a potential acquisition of Indonesian consumer tech giant GoTo by Singapore-based Grab, analysts warn the deal could face opposition in Indonesia over foreign ownership concerns and the regional clout of the potential owner.
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The reported deal would value GoTo at around US$7 billion, according to a Reuters report on May 7, citing two unnamed sources familiar with the matter. The proposal reportedly involves Grab acquiring GoTo’s international unit and most of its domestic business – excluding its finance arm.
If the deal is confirmed, it could be finalised as early as the second quarter, heralding a major consolidation in Southeast Asia’s e-commerce space, which is led by Grab’s US-listed platform that spans ride-hailing, food delivery, digital payments and financial services.
News of the potential merger buoyed investor confidence. Shares of Jakarta-listed GoTo have surged 20 per cent since the start of the year, reaching a market value of roughly US$5.8 billion as of May 7, according to London Stock Exchange data.
Grab’s shares on Nasdaq also climbed 2.4 per cent over the same period, valuing the company at nearly US$20 billion.
However, Grab Indonesia on Thursday dismissed speculation about the merger, saying it was “not based on verified information”.