Uber Plans To Acquire A Dubai-Based Rival Firm For $3 Billion

According to two credible sources Reuters has just received, the California-headquartered transportation network company Uber have planned to acquire Careem, one of its biggest Mideast rivals for the total value of $3 billion.

Also, the third source revealed that the company’s deal would be published at the beginning of this week. In a recent report, Bloomberg stated that Uber would apply two following payment methods including $1.7 billion paid via convertible bonds and $1.4 billion paid in cash. Of which, the convertible bonds will be exchangeable into the shares of Uber with the price equivalent to $55 for each share.

As of now, Careem has refused to give any comment on the deal. As per Uber, the company has kept the deal in a secret, as well as didn’t accept the Reuters request to comment.

At present, the transportation network company is taking the first steps to bring its sale of equity shares to the public. According to what its bankers revealed, this latest deal of Uber would be worth about $120 billion.

Along with the successful deal, the company has looked for new efficient approaches of growth to dominate the ride-hailing business in the Middle East, and of course, to beat over its heavy rivals such as Lyft.