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

Marco Green
March 25, 2019

The deal, expected to be announced on Tuesday, will see Uber pay $1.4 billion in cash and the rest in notes convertible to Uber shares, Bloomberg reported, citing people with knowledge of the matter. Two sources familiar with the deal confirmed the same to Reuters. 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.

On Sunday, Bloomberg reported that the USA ride-hailing giant will pay $1.4bn in cash and $1.7bn in convertible notes at a price of $55 per share for Careem.

Representatives for Uber didn't immediately respond to requests for comment, while a spokesman for Careem wasn't immediately able to comment.

Uber has been preparing for an initial public offering, and its bankers have indicated that it could be valued at as much as $120 billion. This acquisition would mean that Uber is monopolizing the region making it a more valuable stock.

Dubai-headquartered Careem, which was set up in 2012, has been an acquisition target for Uber for years but has so far escaped the American company's clutches, raising hundreds of millions of dollars to compete fiercely with its bigger rival. 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.

Other reports by Click Lancashire

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