Grab is in advanced talks to acquire Indonesian tech company GoTo in the second quarter of this year, according to two sources familiar with the matter, as reported by Reuters.
The Singapore-based firm has appointed advisers to work on the deal, which remains subject to conditions including financing.
One source said Grab is currently in discussions with banks regarding funding.
GoTo, which is listed in Jakarta, would sell its international unit in Singapore and its Indonesian operations—excluding its financial services arm—to Grab, two sources said.
The companies are still negotiating and final terms have not been finalised, they added.
Neither Grab nor GoTo responded directly to questions about the potential transaction.
In a recent filing, GoTo said it has not made any decisions regarding proposals it may have received.
A separate source estimated that the deal could value GoTo at around US$7 billion.
GoTo’s shares have gained about 20% so far this year, giving it a market capitalisation of roughly US$5.8 billion.
Grab’s market value stands at nearly US$20 billion on Nasdaq.
Both companies have discussed a possible merger multiple times in the past, but talks have previously stalled over competition concerns.
A tie-up would create a dominant player in Southeast Asia’s ride-hailing sector, with Euromonitor estimating the combined group would control about 85% of the region’s US$8 billion market.
In Indonesia alone, the combined entity would hold more than 91% market share, and nearly 90% in Singapore, said David Zhang, Asia insights manager at Euromonitor International.
He noted that regulators in these countries would likely impose strict scrutiny and that the deal could face significant antitrust hurdles.
Still, some analysts believe Indonesia may take a more flexible stance, considering the potential benefits of consolidating local tech players to boost long-term economic value.
Featured image: Edited by Fintech News Singapore, based on image by ttonaorh via Freepik
