Singapore competition watchdog says no guidance yet on Grab, GoTo merger plans
A Grab logo is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore March 21, 2019. REUTERS/Anshuman Daga/File Photo
SINGAPORE: The Competition and Consumer Commission of Singapore said on Wednesday (Mar 19) it had not received notification from ride and delivery companies Grab or GoTo on a proposed merger.
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 emailed 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 Wednesday 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 S$13 million (US$9.76 million) after Grab failed to notify it of its merger with Uber, which substantially reduced competition in Singapore.
Last year, Grab called off its proposed acquisition of Singapore's third-largest taxi operator, Trans-cab.
The commission 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.
Where necessary, the CCCS could impose interim measures to preserve market competition, it added.
Grab said it would not comment on rumours or speculation. GoTo said it has no comment beyond its latest disclosure to the stock exchange on Wednesday.
Shares of GoTo dropped 2.4 per cent in Indonesia, underperforming the broader domestic benchmark stock index which rose 1.5 per cent.
