American transportation company Uber is expected to announce the acquisition of Dubai-based rival Careem Networks FZ as early as this week in a $3.1 billion cash-and-share deal, reports Bloomberg.

Uber is reported to pay $1.4 billion in cash and $1.7 billion in convertible notes to buy out Careem, its principal competitor in the ride-hailing market in the Middle East. The company is one of the most valued startups in the region and has operations in over 100 cities in 14 countries in the Middle East, Africa, and South Asia. It also currently employs a million drivers on its platform.

Some of Careem’s high-profile backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc.,

This acquisition presents a reversal of Uber’s Asia strategy over the past few years when its sold off its China business to rival Didi Chuxing and Southeast Asia-based business to rival Grab.

IPO In The Offering

Uber, which is one of the world's most valued startups, is also planning to kickstart its initial public offering (IPO) process in April (2019). This timing will mean that Uber will hit the public markets just after its arch-rival in the US Lyft completes its own IPO by the end of March (2019).

Also Read: Hyundai Stake In Ola Signals Yet Again That Car Business Is Going To Change Forever

Uber Buys Careem

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