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SINGAPORE (REUTERS, BLOOMBERG) – The CEO of Grab, the Singapore carrier, told employees in an internal note on Thursday (December 3) that the company is in a position to make acquisitions, following a report that is close to a merger with regional rival Gojek.
The two firms have made substantial progress in talks to merge the two most valuable startups in Southeast Asia, Bloomberg reported Wednesday.
Sources familiar with the matter have previously told Reuters that in recent years, large investors in the two companies have backed the merger of both loss-making companies.
“There is again speculation about a deal with Gojek,” Anthony Tan told employees in a note on the company’s internal communication platform, seen by Reuters.
“Our commercial momentum is good and, as with any market consolidation rumor, we are the ones in a position to acquire.”
Tan did not elaborate on a possible deal with Gojek. Grab declined to comment on Tan’s note and the media report.
Gojek declined to comment.
Grab, Southeast Asia’s largest start-up, is now valued at more than $ 15 billion (Singaporean $ 20 billion), Reuters reported in October, according to a source familiar with the matter. Gojek’s value has been estimated at $ 10 billion.
According to the previous Bloomberg report, under a proposal under discussion that has substantial support, Tan would become the CEO of the combined entity, while Gojek executives would manage the new combined business in Indonesia under the Gojek brand.
The two brands can be run separately for an extended period, sources told Bloomberg. The combination ultimately aims to become a publicly traded company.
The conversations are still fluid and may not result in a transaction, the sources said. The deal would need regulatory approval and governments may have antitrust concerns about the unification of the region’s two main private transport companies.
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