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Investing.com-- Southeast Asian technology giants Grab Holdings Ltd (NASDAQ:GRAB) and GoTo (JK:GOTO) have resumed merger talks and are targeting a 2025 deadline for the deal, DealStreetAsia reported on Tuesday.
The talks are ongoing, with one executive stating that the merger has to happen by 2025 or not at all, DealStreetAsia reported, citing multiple sources with knowledge of the matter.
Nasdaq-listed Grab and Indonesia-listed GoTo- known primarily for the food delivery and ride-hailing services- have reportedly held on-off merger talks in recent years, with analysts seeing a deal as inevitable due to the substantial overlap in both businesses.
A merger of the two is also expected to further their fintech ambitions, while helping them overcome increasing losses from heightened competition with each other. A merger would also give the two a united front against competition from larger rival Uber Technologies Inc (NYSE:UBER).
Both firms are backed by Japan’s SoftBank Group Corp. (TYO:9984).
Grab, which was listed on the Nasdaq through a merger with a special purpose acquisition company in 2020, is valued at $18.28 billion based on its Monday close, while GoTo is worth about 85.85 trillion rupiah ($5.25 billion)
GoTo’s shares jumped nearly 4% in Jakarta trade after the DealStreetAsia report.