Grab agrees world's biggest SPAC merger

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Southeast Asia's biggest ride-hailing and food delivery firm Grab Holdings has agreed a merger with US-based Altimeter Growth Corp in a deal that values Grab at an initial proforma equity value of about $US39.6 billion and will lead to a public listing.

The merger, the biggest blank-cheque company deal ever, underscores the frenzy on Wall Street as shell firms have raised $US99 billion in the United States so far this year after a record $US83 billion fundraising in 2020.

Singapore-based Grab's agreement with a special purpose acquisition company backed by Altimeter Capital includes a more than $US4 billion private investment in public equity by investors including BlackRock, Fidelity International, Janus Henderson Investors and Temasek Holdings.

Grab said its decision to become a public company was driven by strong financial performance in 2020, despite the pandemic.

Reuters earlier reported that Grab would announce the deal on Tuesday.