Didi to buy Uber China operations in deal valuing combined firm at US$35b: media
[BENGALURU] China's dominant ride hailing firm Didi Chuxing will buy Uber Technologies Inc's operations in China in a deal that will end bruising competition between the two firms, the Wall Street Journal reported.
The deal between the pair - which have been spending heavily to gain market share, increasing new funding needs - could be announced as early as Monday, the paper said, citing unidentified people familiar with the matter.
Bloomberg separately reported that the combined company would be valued at US$35 billion and that investors in Uber China, owned by San Francisco-based Uber, Baidu Inc and others, would receive a 20 per cent stake in the combined company.
Uber and Didi could not be immediately reached for comment.
The deal, if confirmed, would come after China last week issued guidelines that establish a long-awaited framework for the booming industry and remove uncertainty for firms such as Didi and Uber.
Didi itself was created last year from the merger of two companies backed separately by e-commerce giant Alibaba Group Holding Ltd and social network firm Tencent Holdings Ltd.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Hyundai Motor plans to add hybrids to US plant within current investment
Boeing cargo plane lands in Istanbul without front landing gear, no casualties
Uber shares tumble on surprise net loss, weak second-quarter forecast
New law increases control of ownership, management of critical transport firms in Singapore
Premium for big car COEs tops S$105,000 while that for mainstream cars hovers below S$95,000
Toyota sees 20% full-year profit decline after blockbuster Q4