ECA receives formal communication of Uber-Careem acquisition
According to ECA, both parties will not implement the agreement until ECA renders a final decision. “They have also committed to complying with the Interim Measure Order (No 26 of 2018) rendered by ECA on October 22, 2018.”
ECA expressed its concern that this acquisition may eliminate competition on the market in which the parties operate, namely ride-hailing using passenger vehicles, mini-buses, scooters, and Tuk-Tuks, as well as food-delivery and courier services.
On Tuesday, Uber announced reaching an acquisition agreement with Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash.
CAIRO - 26 March 2019: Uber announced on Tuesday reaching an acquisition agreement with Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. Uber added in an official statement that the transaction is expected to close in Q1 2020, clarifying that the acquisition of Careem is subject to applicable regulatory approvals.
Moreover, Saudi Kingdom Holding Co announced that it completed the sale of its shares in Careem to Uber in a deal worth SAR 1.25 billion ($333.17 million) as part of Uber's acquisition of Careem.
The company said in a statement on the Saudi Exchange “Tadawul” that it would receive SAR 565 million in cash, in addition to the acquisition of convertible bonds at Uber for SAR 685 million.
Established in 2010, Uber’s mission was to create opportunity through movement and to solve a simple problem: How do you get access to a ride at the touch of a button? While Careem was founded in 2012, it operates in 120 cities across 15 countries and has created more than 1 million economic opportunities in the region.