US ride-hailing giant Uber is set to announce $3.1 billion acquisition of its Dubai-based rival Careem in a cash and stock deal as early as this Tuesday according to Khaleej Times.
The article in Khaleej times quoted a Bloomberg report that Uber will be paying $1.4 billion in cash and $1.7 billion in convertibles. The notes will be convertible into Uber shares at a price equal to $55 per share.
The acquisition comes ahead of Uber's long-awaited IPO next month, expected to value it at $120 billion. The company has chosen the New York Stock Exchange to list its shares.
Khaleej Times was unable to get a comment from officials of either company.
According to KhaleejTimes the acquisition of Careem, a dominant player in the Middle East, will give Uber a virtual monopoly in the Mena region, and will make it even more attractive for investors.
The deal happens at a time when Lyft, Uber's American rival, is expected to debut on Nasdaq in the next few weeks in an IPO that could value the company at $25 billion.
Careem was launched in Dubai in 2012 and is reportedly valued at over $2 billion making it one of the most valuable technology startups in the Middle East.
