AsianFin -- Singapore-based ride-hailing giant Grab is in discussions to secure a loan of up to $2 billion to finance a potential takeover of Indonesia's GoTo, according to a Bloomberg News report citing sources familiar with the matter. The short-term bridge loan, which would have a maturity period of approximately 12 months, is currently in preliminary stages of negotiation with lenders.
The Nasdaq-listed mobility and delivery platform is reportedly considering longer-term financing options, including bond issuance or equity offerings, to replace the interim loan facility. The move signals Grab's serious intent to pursue what could become one of Southeast Asia's most significant tech mergers.
Both companies have remained tight-lipped about the potential deal. GoTo declined to comment on the latest development, while Grab did not immediately respond to Reuters' request for clarification. This follows GoTo's statement last week denying any concrete agreement about a potential transaction, issued after initial reports surfaced about Grab's acquisition plans.
The two Southeast Asian tech leaders, with Grab backed by Uber, have engaged in intermittent merger discussions that have yet to materialize, largely due to regulatory concerns about the anti-competitive implications of combining the region's two dominant mobility and delivery platforms. A successful acquisition would dramatically reshape Southeast Asia's digital economy landscape, creating a combined entity with unrivaled market share across ride-hailing, food delivery, and digital payments services in the region.
The proposed financing comes at a critical juncture for both companies. Grab seeks to consolidate its market position amid increasing competition, while GoTo continues to navigate post-merger challenges following the combination of Gojek and Tokopedia. Market observers suggest the potential deal's success would hinge on obtaining regulatory approvals across multiple Southeast Asian markets where both companies operate.