Grab is close to getting Uber's Southeast Asian operations

Grab is a popular ride hailing apps in Asia along with Uber. We heard that Grab is trying to acquire Uber's SEA operations and it may be close to a deal.

Grab and Uber's merger in SEA nearly a done deal?

Related: Grab now owns the Southeast Asian business of Uber

Sources say that the two ride hailing giants are close to signing a deal this week or the next. The deal is said to state that Grab will but Uber's operation in certain areas of Southeast Asia. On Uber's side, they will take a stake at Uber's business as well. This would get Uber around 20% of shares in Grab according to sources.

Grab has also been asking for help with their existing backers including SoftBank Group Corp. and new investors for additional capital. Grab stands at a rumored USD 6 billion market value. The talks are yet to be set in stone which means that the deal could still fall apart. There are also no confirmation yet from either Uber or Grab about the deal and its terms.

If the deal pushes through, Grab will have a dominant position, not only in Southeast Asia but in Asia as a whole. This will open an opportunity to take advantage of this emerging SEA region that has more than 620 million people.

We are hoping that this will not affect the rates that Grab will implement once they are the only ride hailing app available in the region.

What do you guys think?

Source: Bloomberg