GoTo shuts down Grab merger rumours – again

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Shares of GoTo Group has fallen following management's clarification that speculation about a potential merger with Grab is untrue. According to IDN Financials, the company's shares dropped 5.75% to IDR 82 per share on Wednesday, after surging 7.41% to IDR 87 per share on Tuesday amid reports of merger talks between GoTo and Grab.

"The company affirms that no agreement has been made with any party regarding a merger transaction, as reported in the media," said GoTo's corporate secretary, R A Koesoemohadiani, in a disclosure document to the Indonesia Stock Exchange (IDX). "There have been no discussions by the company regarding any agreement with Grab," she added.

Don't miss: Grab and GoTo reportedly in talks for potential merger

This is not the first time such rumours have surfaced. Similar speculation about a potential Grab-GoTo merger emerged in 2024, but was also denied by GoTo's management, and no agreement materialised.

Grab and GoTo, two of the region's largest tech firms, have been expanding their service ecosystems, integrating ride-hailing, food delivery, and financial services to capture a larger market share. A potential merger would have significant implications, particularly in Indonesia, where GoTo has a dominant presence but continues to face profitability challenges.

Despite Wednesday's decline, GoTo shares were heavily accumulated by foreign investors. Net foreign purchases reached 241.49 million shares, amounting to IDR 19.71 billion (US$1.2 million) in transaction value, reported IDN Financials.

Year to date, GoTo's stock has risen 16.90%. However, since its initial public offering on the IDX, the tech giant's shares have plummeted by over 77% from their IPO price, reflecting broader challenges in the tech sector.

Previously, speculation about a potential merger between GoTo and Grab surfaced across various media outlets, including Bloomberg, which reported on Tuesday that the deal would be valued at over US$7 billion.

The merger has the potential to cut operational costs and alleviate competitive pressures. Yet, the discussions have been reportedly fraught with challenges, such as the risk of anti-monopoly regulatory scrutiny.

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