Gojek says it’s not in talks with rival Grab about a merger

Gojek says it’s not in talks with rival Grab about a merger

Gojek driver helmets are seen during Go-Food festival in Jakarta, Indonesia, Oct 27, 2018. (Reuters file photo)
Gojek driver helmets are seen during Go-Food festival in Jakarta, Indonesia, Oct 27, 2018. (Reuters file photo)

SINGAPORE: Indonesia’s Gojek denied a report that it’s discussing a merger with rival Grab Holdings Inc, a deal that would combine the leading ride-hailing businesses in Southeast Asia.

“There are no plans for any sort of merger and recent media reports regarding discussions of this nature are not accurate,” Gojek said in an emailed statement Tuesday.

Management teams from the two companies have talked occasionally over the past few years about a deal, and Grab President Ming Maa and Gojek Co-Chief Executive Officer Andre Soelistyo met earlier this month for the latest discussion, The Information reported, citing people familiar with the matter. While talks are believed to be ongoing, a big roadblock to a deal is agreeing on control of the combined entity, according to the report.

Any deal would also likely face regulatory hurdles because it would combine the top two players in the region, reducing competition in ride-hailing and newer fields like food-delivery and finance. Grab and Gojek, valued at $14 billion and $10 billion respectively, used to compete with Uber Technologies Inc. before the US company sold its operations in the region to Grab in 2018, retaining about a 27.5% stake.

That deal drew the ire of regulators, who weren’t given a say ahead of time. Singapore ultimately fined Uber and Grab the equivalent of $9.5 million, but let the combination stand.

A Grab spokesperson declined to comment on the report.


Do you like the content of this article?
COMMENT (1)

Singapore proposes new law to tackle harmful online content

Social media sites could be blocked or fined in Singapore if they fail to stop users in the tightly-controlled country from accessing "harmful" content under a proposed law introduced in parliament on Monday.

3 Oct 2022

Calls for more funding as pre-COP27 climate talks open in DR Congo

KINSHASA: Warning "no-one will escape" a worsening crisis, DR Congo led calls on Monday for a surge in funding to brake global heating and fight its impacts at the start of pre-COP27 climate talks in Kinshasa.

3 Oct 2022

Kim Kardashian pays $1.26m for unlawful crypto promo

WASHINGTON: US reality star Kim Kardashian has agreed to pay a $1.26 million fine after unlawfully pushing a cryptocurrency on Instagram without revealing that she was paid to do so, the Securities and Exchange Commission announced Monday.

3 Oct 2022