Grab dismisses GoTo merger talk as speculation resurfaces

Whispers of a Grab-GoTo merger have once again taken centre stage - only to be promptly shut down. On Monday, Grab Holdings issued a formal denial, clarifying that it is not in discussions with Indonesian tech peer GoTo Gojek Tokopedia regarding any potential acquisition.

“The parties are not involved in any discussions at this time and Grab has not entered into any definitive agreements,” the Singapore-based company said in a stock exchange filing.

The statement followed a Reuters report last month, which claimed that Nasdaq-listed Grab had appointed advisers and was eyeing a deal to acquire GoTo in the second quarter of this year - potentially valuing the Indonesian firm at around US$7 billion. A separate Bloomberg article on Friday added fuel to the fire, stating that Indonesia’s sovereign wealth fund, Danantara, was evaluating participation in the rumoured transaction.

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Danantara has also quashed the speculation. Stefanus Ade Hadiwidjaja, managing director of investment at the state-backed fund, told Tempo on Monday: no such talks had taken place.

This isn’t the first time the idea of a Grab-GoTo union has surfaced. For years, the two companies - arguably Southeast Asia’s most recognisable tech titans - have been the subject of merger rumours, especially as both grapple with the dual challenge of scaling profitably and maintaining investor confidence.

But the latest wave of reports struck a chord, largely because of the specificity involved, and the inclusion of high-level regional stakeholders such as Danantara. The denial from both Grab and GoTo, however, suggests that the rumour may have once again leapt ahead of reality.

Grab used the moment to restate its broader strategic posture. “We will continue to maintain a high hurdle rate when deploying our capital, and will have a balanced approach to investing for organic, profitable growth, and be highly selective on inorganic opportunities, in line with our capital allocation framework,” the company said.

Indonesia, the company added, “continues to be an important country in serving our mission as we continue to outserve our Indonesian customers, driver- and merchant-partners.”

In April and May, Grab’s on-demand gross merchandise value rose 19% year-on-year, while mobility rides were up 23% for the same period.

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