Ride-hailing firm Uber and its middle East rival Careem have entered into a partnership that will see Uber acquire the latter for $3.1 billion, a transaction consisting of $1.7 billion in convertible notes and $1.4 billion in cash.
In a joint statement, the firms noted that Careem would continue operating separately, retaining its branding, services and application but it will become a wholly-owned subsidiary of Uber.
“Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates,” part of the statement said.
The transaction which is expected to close in Q1 2020 awaits regulatory approval.
The deal comes ahead of Uber’s public offering which is expected to reach a valuation of up to $120 billion.