Asian transport service Grab lifts the world’s largest Spac deal

The still young company’s plans to go public on the American stock market are becoming more concrete. Grab has approved the merger with a shell and is now valued at $ 40 billion.

Fast through the traffic jam: Grab food service driver on the road in Bangkok

SSoutheast Asia’s largest transport and food delivery service Grab has agreed to a superlative Spac deal. In the merger agreed on Tuesday with the American shell (Spac) Altimeter Growth, the Uber competitor is valued at almost 40 billion dollars. This is the largest Spac deal ever made, which should give the hype about these IPOs “through the back door” further fodder. The strategy of Grab co-founder Anthony Tan to invest heavily in growth and to localize offers is paying off. The trend towards digitization in many areas of life helped the company to attract an influx of customers during the Corona crisis.

Grab, in which Softbank, Mitsubishi UFJ Financial Group and China’s driver service Didi Chuxing are involved, started as a rideshare service in Malaysia in 2012 and was valued at around 16 billion dollars in the last financing round. International fameacquired the most valuable startup in the region with the takeover of the regional Uber business in 2018. Grab is now active in eight countries and 398 cities, also delivers restaurant meals and groceries, and also offers payment services. Bank-and insurance business, the company founded in 2012 has now also set its sights on.

With the help of big investors

Grab’s agreement with Altimeter Capital’s shell, Altimeter Growth, means that investment companies like Black Rock, Fidelity International and Temasek Holdings will invest more than $ 4 billion. Grab will generate revenue of approximately $ 4.5 billion as part of the merger. The transaction, which is expected to be completed in the coming months, has yet to be approved by shareholders.

The IPO should also give Grab more opportunities to hold the upper hand in Grab’s main market, Indonesia. There competitor Gojek is aiming for a merger with the leading online retailer Tokopedia. Grab, whose sales rose by 70 percent last year, is in the red. However, the company wants to break even in the current year, at least in the food delivery business.