News

Uber Plans to Takes Over Middle-Eastern Rival Careem for $3.1 Billion

mm
Uber Plans to Takes Over Middle-Eastern Rival Careem for $3.1 Billion

Ride-hailing app Uber is offering to buy out its primary Middle Eastern rival Careem for USD 3.1 billion in cash-and-share, Bloomberg reported.

The deal could be announced as early as Tuesday. The Dubai-based company shareholders including Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc. have until Monday night agree to the offer.

Sources revealed that Uber is paying USD 1.4 billion in cash and USD 1.7 billion in convertible notes for Careem as Uber shares.

According to Bloomberg, Uber’s spokesperson Matt Kallman refused to comment on the matter and Careem’s spokesperson Maha Aboul Enein was unavailable.

The merger comes before an imminent initial public offering, which will be one of the New York Stock Exchange’s biggest-ever listings. San Fransisco-based company is plans to publicly file for an IPO next month with a listing that would increase the company’s value to USD 120 billion. This acquisition would mean that Uber is monopolizing the region making it a more valuable stock.

On the other hand, in 2016, Careem was worth USD 1 billion becoming the most valuable tech start up in the region with over one million drivers operating in 15 countries. Even though Careem is more has a huge stamp on the local market, this deal “signal its commitment to the Middle East, where one of its biggest investors — a Saudi Arabian sovereign wealth fund — is based,” Bloomberg reported.

It is expected that this take over will bring forward problems that the two companies have been undergoing in terms of regulations with the Egyptian Competition Authority who cautioned the ride hailing apps against a merger by threatening them with a potential USD 28 million fine.

Egypt Calls For Boycott of BBC After Anti-Sisi Report
Singer Sherine Banned from Performing After Freedom of Speech Comments

Subscribe to our newsletter


News

More in News

Activist Marwa Kenawy Petitions Against Pardoning of her Son’s Convicted Killers

Fadila El Karrany17 January 2022

South Korea’s President to visit Egypt for the First Time in 16 Years

Farah Rafik17 January 2022

At 12 Years Old, Egyptian-American Sawsan Ahmed Graduates University

Fadila El Karrany17 January 2022

The Cairo Palace of Arts Hosts the 32nd Youth Salon

Farah Rafik16 January 2022

‘Nour’ Journal by Arab Women Writers Digitalized for the Public

ES Buzz14 January 2022

Prominent Public Figures Wael al-Ibrashi and Tahany el-Gebaly Pass Away Due to COVID-19

Mona Abdou10 January 2022

Film My Design Festival Returns for Its 2nd Edition in January 2022

Mona Abdou10 January 2022

Egyptian Media CEO Detained for ‘Assaulting Orphan Girls’

Marina Makary9 January 2022