Grab Stock Rises Premarket On Report Of Moving Ahead With GoTo Deal, Retail Posts Show Early Bullish Bias

Grab stock (GRAB) gained 5.4% on Tuesday after Bloomberg reported that the company was moving forward with its plans to take over Indonesia-based GoTo and has begun due diligence on its rival.

The report, citing people familiar with the matter, said Grab has been evaluating GoTo’s accounts, contracts, and operations.

The report also said that the two companies and their shareholders have been evaluating the potential structure and value of the agreement.

However, the report added that a deal might still not go through.

In February, Bloomberg reported that the companies discussed a scenario valuing Indonesia’s GoTo at more than 100 rupiah per share.

According to The Fly, Citi analysts wrote following the merger speculation that the combined companies would control and cover between 80% and 90% of on-demand services in Indonesia and have a greater share of digital wallets and financial services.

The two companies, backed by Softbank, had discussed a potential deal before this year, but nothing materialized.

Grab offers various services, including food deliveries, online ride booking, and financial services. The company operates primarily in Southeast Asian countries, such as Indonesia, Singapore, and Malaysia.

The company had projected 2025 revenue below Wall Street’s estimates earlier this year.

Retail sentiment on Stocktwits was in the ‘bearish’ (29/100) territory on Monday prior to the report, while retail chatter was ‘extremely low.’

Early posts from retail traders reacting to the news showed a bullish tilt.

Grab shares have fallen 5.7% year-to-date (YTD).

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