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Grab seeks up to US$2 billion loan for potential takeover of GoTo

The company, which is backed by Uber Technologies, is moving ahead with due diligence and is in talks about the structure of a deal that could fetch more than US$7 billion

    • Grab’s transaction comes amid a busy time for dealmaking as valuations become more attractive and rainmakers scour for opportunities in Asia.
    • Grab’s transaction comes amid a busy time for dealmaking as valuations become more attractive and rainmakers scour for opportunities in Asia. PHOTO: BLOOMBERG
    Published Wed, Mar 26, 2025 · 02:24 PM

    [MUMBAI, HONG KONG] Singaporean ride and delivery firm Grab Holdings is in talks to raise a loan of as much as US$2 billion to back its potential takeover of Indonesia-based rival GoTo Group, according to sources familiar with the matter.

    The so-called bridge loan could have a tenor of about 12 months, said the sources, who asked not to be identified discussing private matters. Talks with banks are in early stages and details could be subject to change, the sources added.

    A GoTo spokesperson declined to comment, while Grab did not respond to e-mails and messages requesting comment.

    Grab’s transaction comes amid a busy time for dealmaking as valuations become more attractive and rainmakers scour for opportunities in Asia. This translates into a strong M&A financing pipeline, potentially boosting the region’s loan market that is set to recover in 2025 from a three-year drop.

    Blackstone is tapping Citigroup to raise at least US$200 million-equivalent to back its purchase of South City Mall in India’s Kolkata, while Advent International is seeking an around US$300 million-equivalent loan for its acquisition of contact lens maker Ginko International’s China operations.

    Grab’s envisioned capital-raising suggests the deal is advancing, after a period of hesitation that stalled potentially one of the more significant South-east Asian tech acquisitions in years. The company, which is backed by Uber Technologies, is moving ahead with due diligence and is in talks about the structure of a deal that could fetch more than US$7 billion, Bloomberg reported last week.

    Grab is also considering a bond or equity take out after the firm secures the bridge loan, said one of the sources. Still, the deal is dependent on the successful acquisition of GoTo, the sources added. BLOOMBERG

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