Grab explores $7 billion takeover of rival GoTo in Southeast Asia
Grab Holdings is considering a takeover of rival GoTo Group, valuing the deal at over $7 billion. This marks a shift as discussions have intensified recently, with both companies aiming to reduce costs in Southeast Asia's competitive market. The proposed deal could involve an all-stock purchase, offering a 20% premium on GoTo's current share price. Grab and GoTo, the largest ride-hailing services in the region, have previously struggled with profitability amid fierce competition. Past merger talks faced challenges, including disagreements and potential antitrust issues. Both companies have pursued smaller acquisitions to improve finances while navigating a slowdown in growth due to rising inflation and changing consumer behavior.