Uber to announce deal to buy rival Careem as early as this week -Bloomberg - Southern Business Review

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Sunday, March 24, 2019

Uber to announce deal to buy rival Careem as early as this week -Bloomberg




A cell phone with the Uber transport technology app, with the destination and its cost to the international airport, is seen inside a car with an Uber driver, in Santiago, Chile, March 15, 2019. REUTERS/Rodrigo Garrido




(Reuters) - Uber Technologies Inc will announce plans to acquire Dubai-based rival Careem Networks FZ as early as this week, Bloomberg reported on Sunday, citing people familiar with the matter.


Uber will pay $1.4 billion in cash and $1.7 billion in convertible notes, which will be convertible into Uber shares at a price equal to $55 per share, according to a term-sheet that Bloomberg said it had seen.


Careem declined comment while Uber did not immediately respond to a request from Reuters 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.




Reporting by Mekhla Raina in Bengaluru; Editing by Leslie Adler