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Uber to announce a $3.1B deal to buy rival Careem

Uber to announce a $3.1B deal to buy rival Careem

Uber Inc(Online Taxi service). is going to announce a $3.1 billion cash-and-share deal to buy its Dubai-based rival Careem Networks FZ as early as this week, according to people with knowledge of the matter.

The International Online Taxi giant will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem, the people said, asking not to identified because the talks are private. The notes will be convertible into Uber shares at a price equal to $55 per share, according to the term-sheet seen by Bloomberg.

Shareholders in Careem, whose investors include Saudi Prince Al-waleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc., have been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday, the people said.

Uber spokesman Matt Kallman didn’t comment while a spokesman for Careem wasn’t immediately able to comment.

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