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Why is Grab Stock Up Today After Merger Talks

Grab Holdings Limited (GRAB) saw a significant surge in its stock price on February 4th, 2025, closing at $5.11, up 12.56% from the previous close of $4.54. The stock opened at $4.99 and reached a high of $5.19 during the day, with trading volume soaring to 75,961,732 shares, more than double the average daily volume. This spike in activity and price was driven by reports of advanced merger talks between Grab and its Indonesian rival, GoTo Group, in a deal valued at over $7 billion. The potential merger is seen as a strategic move to consolidate the competitive Southeast Asian market, with analysts from Citi highlighting potential synergies such as cost savings and improved margins.

The market reacted positively to the news, with investors optimistic about the merger's potential to create a dominant force in ride-hailing, delivery, and fintech services in the region. HSBC also upgraded Grab's stock from Hold to Buy, citing its strong financial footing and long-term growth potential. Despite previous hurdles in merger discussions, the renewed talks have gained momentum, with both companies aiming to finalize the deal by 2025.