Indonesia discussing plan for merger of Grab and GoTo, official says

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Indonesia is discussing a possible merger or acquisition between ride-hailing and food delivery firm Grab NASDAQ:GRAB and its rival GoTo IDX:GOTO, the presidential spokesperson said on Friday. The government considers the ride-hailing industry as strategic for job creation and vital to the economy. GoTo's Gojek unit alone has more than 3.1 million online riders, and GoTo and Grab have dominated the Indonesian market for years.A combined entity would hold a market share of over 91% in Indonesia, according to data analytics company, Euromonitor International.Indonesian government spokesperson Prasetyo Hadi said a decision would come soon. "Online riders are economic heroes, driving the economy," he said.Grab and GoTo did not immediately respond to request for comments.Reuters has previously reported that Nasdaq-listed Grab was looking to strike a deal to buy smaller rival GoTo in the second quarter this year and had hired advisers to work on the proposed acquisition. A deal could value GoTo at around $7 billion, a source close to the matter said earlier this year.GoTo is 73.90%-owned by foreign investors, including SoftBank Group TSE:9984 and Taobao China Holding, a unit of China's Alibaba Group HKEX:9998, with the rest owned by Indonesian investors, according to its 2024 annual report.

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