The Egyptian Competition Authority (ECA) has approved of Uber’s merger deal with Careem and their subsequent operations in the country in accordance to certain regulatory obligations and restrictions, as per ECA’s official statement. In March 2019, it was announced that Uber and Careem have reached an agreement for Uber to acquire Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates. Upon merging, Careem will become a wholly-owned subsidiary of Uber, preserving its brand in the 14 countries and 100 cities where it operates. In September, the ECA warned the ride-hailing giants of proceeding with the merge and carrying operations in Egypt without permission, citing concerns with monopoly and protection of competition. “In the absence of regulations to manage the situation, completing the deal would lead to the creation of the following damages: increased prices, low service levels, few options available to the consumer, absence of innovation, and…
Egypt Approves of Uber-Careem Merger Deal Under Certain Regulations
December 29, 2019
