SINGAPORE: Grab Holdings Inc and Gojek have made substantial progress in working out a deal to combine their businesses in what would be the biggest internet merger in Southeast Asia, according to people with knowledge of the talks.
Under one structure with substantial support, Grab co-founder Anthony Tan would become the chief executive officer of the combined entity, while Gojek executives would run the new combined business in Indonesia under the Gojek brand, the people said.The combination is ultimately aimed at becoming a publicly listed company.The talks are still fluid and may not result in a transaction, the people said.
Investors have been pushing for them to combine forces across Southeast Asia in order to reduce cash burn and create one of the most powerful internet companies in the region. The old rivalry and personality clashes between the two companies’ leaders have led to deadlocked negotiations in the past, according to one of the people familiar with the talks.
Sea went public in 2017 after raising more than US$720 million from investors and now has a market value approaching US$88 billion.