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

Egypt Releases Satirist and Vlogger Shady Abu Zeid After 2 Years

Egyptian StreetsOctober 18, 2020

Egypt’s Mufti Condemns Killing of French Teacher For Prophet Muhammed Caricatures

Egyptian StreetsOctober 17, 2020

Veteran Actor Mahmoud Yassin Passes Away, Aged 79

ES BuzzOctober 15, 2020

Egyptian Woman Killed in Maadi After Being Dragged by Car

Egyptian StreetsOctober 14, 2020

Egypt’s Health Minister Calls for Free COVID-19 Vaccines for Developing Countries

Egyptian StreetsOctober 13, 2020

Gal Gadot to Star in Cleopatra Biopic, Sparking Outrage

Egyptian StreetsOctober 12, 2020

Nearly Half of Arab Youth Consider Leaving Their Home Countries: AYS

Egyptian StreetsOctober 10, 2020

Nobel Peace Prize Winners: How WFP in Egypt is Transforming Lives

Egyptian StreetsOctober 9, 2020