Grab Holdings Ltd, is making moves to acquire its Indonesian rival GoTo Group. Sources say Grab has started due diligence in checking o To’s financials, contracts and operational conditions to assess the deal. Both companies and their investors Both companies and their investors
Grab and GoTo have had on-and-off discussions in the past, but the merging never worked out as both parties dominate the ride-hailing and delivery space in Southeast Asia.
Grab, backed by Uber, has been leading the market since Uber exited the region in 2018 in exchange for a stake in the company
Reports suggest that Grab is looking into an all stock deal valuing GoTo at over $7 billion, possibly offering 100 rupiah per share. Meanwhile, On Tuesday GoTo stock surged nearly 6.3% and is currently priced at 83.00 rupiah, while counterpart markets in Indonesia are struggling. So far, its shares have gained 18.57% this year, pushing its market value to around $5.8 billion.
Source: Yahoofinance
How Grab’s Stock Is Reacting
Looking at the chart, Grab’s stock has climbed by 24.65% over the last six months and are currently trading at $4.45 as of March 17. It hit a peak of $5.11 in February, then cooled off, but the latest pre-market jump (+6.97%) shows that investors are feeling positive toward their acquisition talks.
Looking long term, Grab is still down 62.57% from its IPO days, struggling to recover past highs. However, The stock’s 52-week range is $2.98 – $5.72, meaning it’s now closer to its upper limit, showing some recovery.
What’s Next?
If the deal goes through, Grab could tighten its grip on the market in Southeast Asia, possibly growing revenue and cutting competition. But the big problem is that authorities might not let two giants merge so easily.
Right now, investors seem optimistic, but it’s still a wait-and-see situation. Should the acquisition be blocked, Grab could see some short-term turbulence. Either way this is a big move that’s shaking up the market.
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