Singapore’s competition watchdog said on Wednesday it has not received any formal notification from ride-hailing and delivery firms Grab and GoTo regarding a potential merger, according to a Reuters report.
The Competition and Consumer Commission of Singapore (CCCS) acknowledged media reports on the possible deal and advised the companies to seek legal counsel to ensure compliance with Singapore’s competition laws.
The regulator remains open to discussions through its merger notification and pre-notification processes.
Singapore-based Grab, backed by Uber, and Indonesia’s GoTo have reportedly held multiple discussions over a possible tie-up.
However, GoTo reiterated on Wednesday that no agreement had been reached, following a recent report that Grab had begun due diligence for a potential takeover.
A merger between the two firms would give them a dominant position in the region, accounting for nearly 90% of the ride-hailing market in Singapore and more than 91% in Indonesia, according to Euromonitor International.
CCCS previously fined Grab and Uber S$13 million (US$9.76 million) in 2018 after Grab failed to notify it of its merger with Uber, which substantially reduced competition in Singapore.
The regulator has the authority to impose fines of up to 10% of a company’s turnover in Singapore per year of infringement, capped at three years.
It can also order corrective measures, including unwinding mergers or implementing remedies to mitigate anti-competitive effects. Where necessary, CCCS may also impose interim measures to maintain market competition.
Last year, Grab abandoned plans to acquire Singapore’s third-largest taxi operator, Trans-cab.
Both Grab and GoTo declined to comment beyond GoTo’s latest stock exchange filing.
Featured image credit: Edited from Freepik
