Singapore competition watchdog says no guidance yet on Grab, GoTo merger plans
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The merger talks between Grab, which is backed by Uber, and GoTo have been on and off, but have not resulted in a deal.
PHOTOS: ST FILE, REUTERS
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SINGAPORE - The Competition and Consumer Commission of Singapore (CCCS) has not received notification from ride and delivery company Grab or Gojek owner GoTo on a proposed merger, it said on March 19.
The commission said that it is aware of media reports regarding a possible merger between the two companies, and that the parties should seek legal advice on whether any proposed merger complies with competition laws in Singapore.
“CCCS is open to engaging with the parties via our merger notification and pre-notification discussion processes,” it said in an e-mailed statement to Reuters.
Singapore-headquartered Grab, which is backed by Uber, and its smaller Indonesian rival GoTo have reportedly engaged in several rounds of talks over a potential merger.
GoTo reiterated on March 19 that there was no agreement with any party about a potential transaction after Bloomberg News reported this week that Grab had begun due diligence to take over GoTo
If combined, Grab and GoTo would hold a market share of almost 90 per cent in Singapore and more than 91 per cent in Indonesia in the ride-hailing sector, according to Euromonitor International.
CCCS in 2018 fined Grab and Uber a combined $13 million after Grab failed to notify it of its merger with Uber, which substantially reduced competition in Singapore.
In 2024, Grab called off its proposed acquisition of Singapore’s third-largest taxi operator, Trans-Cab.
CCCS said it can impose penalties of up to 10 per cent of the turnover of a company’s business in Singapore for each year of infringement, up to a maximum of three years, if a company is found to have breached competition laws.
“Directions can be made under the law to remedy, mitigate or eliminate the adverse effects arising from the merger, including unwinding the merger,” it said.
Grab did not immediately respond to an e-mailed request seeking comment. GoTo said it has no comment beyond its latest disclosure to the stock exchange on March 19. REUTERS
