On March 19, Indonesia's GoTo Gojek reiterated that no agreement had been reached with any party regarding a potential transaction, amidst media reports suggesting Singapore-based Grab was pursuing an acquisition.
According to Bloomberg News on Tuesday, Grab, a U.S.-listed ride and delivery company, had initiated due diligence on its Indonesian competitor, as reported by sources familiar with the matter.
Following this news, Grab's shares surged 5.4% in premarket trading on Tuesday, settling to a 3.4% increase by the end of the day. Conversely, GoTo, the operator of Gojek, experienced a 5% rise in its shares on Tuesday.
Merger discussions between Grab, which is supported by Uber, and GoTo have been sporadic, with no finalized deal, primarily due to concerns over competition arising from the potential consolidation of these two major Southeast Asian players.
In response to recent speculations, GoTo stated on Wednesday that the company and its management remain dedicated to their business activities and performance goals.
Earlier in February, GoTo dispelled market rumors by clarifying that, besides implementing share buybacks, the company had no significant corporate action plans for the upcoming 12 months.
Grab had not responded to a request from Reuters seeking comment.