Grab Tells Staff it is ‘in a good position to acquire’ as Gojek Merger Issue Swirls
Grab as the biggest ride-hailing and food-delivery company in Southeast Asia has done a lot to provide services for millions of people these last several years. After the report concerning its merger with Gojek is getting close appears here and there, Grab told its staffs that the company is in a good position to make acquisitions as it talked about the advantages.
For its part, Gojek executives shared to employees that the merger issue was “very well capitalised”. Gojek didn’t close its option to have a deal with another company even though it has had a great runway developing the business for years. However, the company claimed that it had “no pressing reason” to actualise the kind of deal is widely mentioned in the media.
The notes put out to the staffs on Thursday arrive in subsequent with a Bloomberg report saying the two companies made major headway in merger discussion. The report mentioned that Gojek’s leadership would run the combined Indonesian business under Gojek brand, while Anthony Tan as the CEO of Grab would head the new unity.
Sources told Reuters that large investors in the two big firms have undergone a merger in recent years so the issue wouldn’t be a problem.
Grab, Southeast Asia’s most valuable start-up at over $15 billion and backed by SoftBank Group, resisted matter on Tan’s note and the merger report. Gojek, the $10 billion worth company, also denied matter on the note and the possibility of a merger.
Southeast Asia has the market of ride-hailing, food delivery, e-payments and insurance held by Jakarta-based Gojek and Singapore-based Grab. The internet economy in the region is expected to increase beyond $100 billion this year.
“There is speculation again about a Gojek deal. Our business momentum is good, and as with any market consolidation rumours, we are the ones in a position to acquire,” said Anthony Tan in the note seen by Reuters. Tan stated that before overheads Grab had become lucrative. Moreover, as the year approaches its end, the business had recovered like it was before the pandemic.
Meanwhile, co-CEOs of Gojek, Kevin Aluwi and Andre Soelistyo claimed in a note to their staff that the firm was “the largest tech company in Indonesia with a strong presence in multiple markets”. Emphasising the statement, they added. “Our investor list is the envy of every other pre-IPO company in the world, with Google, Tencent, Facebook, Paypal, and many others continuing to throw their weight behind us”.
Analysts say that even if the agreement was real, any bound would likely to face a challenge from competition watchdogs. “The scale of their operations and dominance in the markets they operate in may come in the way for the planned merger as regulatory authorities are likely to have an anti-competition concern,” explained Aurojyoti Bose at analytics firm GlobalData.
Source : Grab and Gojek Merger Issue