Grab, Gojek said to close in on terms for Southeast Asia’s biggest internet merger

Singapore-based Grab was last valued at more than US$14 billion, while Indonesia’s Gojek is valued at US$10 billion

Grab and Gojek have been locked in a fierce, expensive battle for dominance in ride-hailing, food delivery and mobile payment services

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Singapore-based Grab and Indonesia’s Gojek compete in ride-hailing, food delivery and mobile payment services in Southeast Asia. Photos: Shutterstock

Published: 6:18pm, 2 Dec 2020Updated: 6:46pm, 2 Dec 2020

Grab Holdings and Gojek have made substantial progress in working out a deal to combine their businesses in what would be the biggest internet merger in Southeast Asia, according to people with knowledge of the talks.

The region’s two most valuable start-ups have narrowed their differences of opinion, though some parts of the agreement still need to be negotiated, said the people, asking not to be named because the talks are private. The final details are being worked out among the most senior leaders of each company with the participation of SoftBank Group Corp’s Masayoshi Son, a major Grab investor, one of the people said.

Under one structure with substantial support, Grab co-founder Anthony Tan would become the chief executive of the combined entity, while Gojek executives would run the new combined business in Indonesia under the Gojek brand, the people said. The two brands may be run separately for an extended period of time, one of the people said. The combination is ultimately aimed at becoming a publicly listed company.

Representatives of Grab, Gojek and SoftBank declined to comment. The talks are still fluid and may not result in a transaction, the people said. The deal would need regulatory approval and governments may have antitrust concerns about the unification of the region’s two leading ride-hailing companies.

Under one plan with substantial support, Grab co-founder Anthony Tan would become the chief executive of the combined entity from the merger with Gojek. Photo: Bloomberg

Grab and Gojek have been locked in a fierce, expensive battle for dominance in that business, along with food delivery and mobile payment, over the past several years. Investors have been pushing for them to combine forces across Southeast Asia to reduce cash burn and create one of the most powerful internet companies in the region.

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