Gojek, Tokopedia in advanced talks for merger, report says

Should a deal materialize, the combined entity will have a value of over US$18 billion and will provide services ranging from ride-hailing and payments to online shopping and delivery. The two Southeast Asian giants have signed a detailed term sheet to conduct due diligence of their businesses, the report noted.

A Tokopedia spokesperson declined to comment on the matter and Gojek did not immediately respond to Tech In Asia‘s requests for a comment.

While both parties are looking to close the deal as soon as possible in the coming months and see potential synergies from the agreement, they are still discussing merger ratios. The merged entity could seek a joint listing in Jakarta and the US, or work with a blank-check company for an American listing.

The development comes after the two Indonesia-based startups held discussions over a potential merger of their entities in December. However, the companies disagreed over the management of their businesses in their key region of Indonesia at the time, said the report.

The potential merger between them could face less regulatory backlash than a deal between Gojek and Grab, who have reportedly agreed on parts of their tie-up but with some portions still needing further negotiations.