Market Overview

Uber Gets Egypt Approval For $3.1B Middle-East Rival Acquisition Deal

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Uber Gets Egypt Approval For $3.1B Middle-East Rival Acquisition Deal

The Egyptian authorities have approved the San Fransisco-based ride-sharing company Uber Technologies Inc.'s (NYSE: UBER) bid to acquire middle-east rival Careem Inc.

What Happened

In a statement on Sunday, the Egyptian Competition Authority said that the authorities had approved the acquisition deal after conducting extensive due diligence.

The $3.1 billion acquisition deal was announced earlier in March, ahead of Uber's initial public offering, as reported by the Associated Press at the time.

Some of the commitments, ECA has asked of Uber, include setting the surge pricing to 2.5 times the average trip cost, no further increase in the commission deducted from drivers' income beyond the existing rates, and requirements to share mapping and tripping data with new competitors — provided that the user has agreed to it.

What's Next

The acquisition deal is expected to be signed in January, after all relevant regulatory approvals are received, according to Reuters.

"We welcome the decision by the Egyptian Competition Authority (ECA) to approve Uber's pending acquisition of Careem," an Uber spokesperson told Reuters.

"Uber and Careem joining forces will deliver exceptional outcomes for riders, drivers, and cities across Egypt."

Under the agreement, Careem will get to keep its brand and business separate from Uber, although the two companies will integrate part of their networks going ahead, Uber chief executive officer Dara Khosrowshahi said in March.

Price Action

Uber's shares last closed 1.63% lower at $30.17 on Friday.

Posted-In: Associated PressM&A News IPOs Global Tech Media General Best of Benzinga

 

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