Uber Buys Rival Careem In $3.1B Deal

Global ride-hailing firm Uber Technologies Inc will spend $3.1 billion to acquire Middle East rival Careem. Buying dominance in a competitive region ahead of a hotly anticipated initial public offering.

Uber revealed this on late Monday night. It would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies. And hands Uber a much-needed victory after a series of overseas divestments.

The notes will be convertible into Uber shares at a price equal to $55 apiece, Uber said, marking about a nearly 13 per cent increase over Uber’s share price in its last financing round, which is also led by SoftBank Group Corp more than a year ago.

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