Didi Chuxing announced on Monday that it will acquire Uber. Didi will acquire Uber’s Mainland Chinese assets in the strategic agreement.
Uber and Didi Chuxing will become minority interest shareholders in each other’s companies. Uber will hold 5.89% of Didi’s stocks which amounts to a 17.7% financial stake in the company. Uber’s Chinese investors will receive 2.3% interest of on their investment. Didi Chuxing founder and CEO Wei Cheng will join Uber’s international board. Uber founder and CEO Travis Kalanick will join Didi’s board.
Bloomberg reported that Didi will invest $1 billion in Uber’s global company. This is 1.47% of Uber’s $68 billion valuation. Uber China will be valued at $35 billion after the merge.
It is widely believed that the deal will be approved by China’s Ministry of Commerce. Uber’s China’s net salary was not about 400 million RMB, therefore the deal will not trigger the government’s antitrust mechanisms.
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Keywords: Uber Uber China Didi Chuxing
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