Uber ‘set to buy rival Careem in Middle East’

Keiligh Baker's picture
by Keiligh Baker

Uber is close to clinching a deal to buy the Middle Eastern ride-hailing rival Careem in a transaction worth more than $3 billion, according to people close to the negotiations.

Uber will pay $1.4 billion in cash and $1.7 billion in convertible notes, which will be convertible into Uber shares at a price equal to $55 per share, according to a term-sheet that Bloomberg said it had seen.

Uber has been preparing for an initial public offering, and its bankers have indicated that it could be valued at as much as $120 billion.

Uber, the biggest and most international ride-hailing service, is preparing for a flotation in New York, with speculation it could be valued at as much as $120 billion.

The Times reports Dubai-based Careem was founded by two former McKinsey management consultants in 2012 and was valued at around $2 billion when it last raised new capital in a fundraising last year.

It competes directly with Uber in ride hailing and food delivery in the Middle East, north Africa and south Asia.