Uber to buy rival Careem for $3.1 bn

Uber Technologies has bought Middle East rival Careem for $3.1 billion, the two companies said in a statement Tuesday.

Uber will pay Dubai-based Careem $1.4 billion in cash and another $1.7 billion in convertible notes when the deal closes, the Bloomberg reported. The transaction is expected to close in Q1 2020.

According to the report, Uber CEO Dara Khosrowshahi has cut the largest deal of his tenure.

The deal comes as San Francisco-based Uber is preparing to file in April for an initial public offering, people familiar with the matter have said.

“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,” the statement said.