Tech - GOTO & Grab reported to resume merger talks

Tech - GOTO & Grab reported to resume merger talks Goto Gojek Tokopedia (GOTO) and Grab are reportedly to have resumed talks on potential merger. According to various sources, both companies rumoured be involved in the early phase of discussions on schemes implementation, yet no deal has been reported so far. Nevertheless, Grab hints to acquire raid hailing units of GOTO through combination of cash payment and stakes, a source of Bloomberg said. (Sources : Kompas, Bloomberg) Comment : While we believe that potential merger could lead to better monetisation in ride hailing industry, it will be a subject of thorough examination of regulators considering their commanding position of market share in respective countries. Indonesian regulator or KPPU will ensure that the merged entities should not result in monopolistic practice. In Indonesia, both Gojek and Grab are estimated to control c. over 90% of market share, leaving smaller competitors, Maxim and In-Drive holding minuscule portion of market share.