Why a Gojek-Grab merger is like the Loch Ness monster

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Hello reader,

I recently spoke to a colleague who was involved with bringing our merger with SPH Media over the finish line. One thing I learned is that signing an agreement is just the beginning of a long process.

Getting from that point to finalizing the deal comes with its share of challenges, to say nothing of post-completion matters and the actual integration of two different companies.

However, this is small peas compared to what a merger between rivals Grab and GoTo would involve. Recently, reports of a potential deal between the two super apps have surfaced yet again.

In this week’s featured story, my colleague Jofie and I take a closer look at why this is happening. Hint: It may have something to do with GoTo’s new leadership and the consummation of the deal between Tokopedia and TikTok Shop.

While the media loves to speculate about M&A (Tech in Asia is guilty of that too), any merger between Grab and Gojek is unlikely to happen in the next couple of years.

GoTo is more financially secure than it was in early 2023, when rumors of a union last emerged. A merger is also likely to face plenty of regulatory hurdles, both in Singapore and Indonesia.

All this deal talk between Grab and GoTo reminds me of Nessie or the Loch Ness monster, a mythical marine creature thought to inhabit a lake in Scotland. Every now and then, someone will claim to have seen it, but it is still widely regarded as a myth – for now, at least.

— Simon

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Image credit: Timmy Loen

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