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Companies have considered several possible structures but have not yet found agreement according to sources close to the process.
Uber Technologies Inc. and Careem Networks FZ hold preliminary talks to merge their transportation services into private vehicles in the East. Medium, according to three people familiar with the subject. With this the companies are trying to solve an expensive rivalry while Uber is preparing to go public next year.
The companies looked at several possible structures but have not yet reached an agreement, according to the people, who have asked that it is not revealed its identity because the conversations are private.
Uber sold operations in Southeast Asia, Russia and China, and insisted that it had already completed the sale by parties of its global business. In discussions with Careem, Uber said he would need to own more than half of the merged company, or buy Careem directly, according to people close to the negotiations.
A spokesman for Uber declined to comment. Maha Abouelenein, spokesperson for Careem, declined to comment on the talks and added in a statement that the company was "just starting" with its plans for expansion.
According to a proposed agreement, the current leaders of Careem would manage the new business. merged on a day-to-day basis and would keep one or both of the local brands of businesses, people said.
According to another proposal, Uber would have acquired the entire Careem. People also said that an agreement might not be concluded.
Careem is currently negotiating with investors for US $ 500 million financing, which could cost the Dubai-based company about $ 1,500 million. . According to sources, the company had initial discussions with banks about a possible IPO in January.
Uber CEO, Dara Khosrowshahi, said at a conference in May that he thought Uber would lead the markets in India, the Middle East, and Africa " We will be, I believe, the winning player in these markets and we will control our own destiny, "said Khosrowshahi
Uber moved its business to major markets by preparing its own IPO in 2019. Last year, Uber and Yandex NV agreed to merge their operations in Russia and want to become public in 2019. In March, Uber agreed to change its operations in Southeast Asia by a 27.5% stake in Grab Holdings Inc. of Singapore
Careem operates in more than 70 cities in at least 10 countries, from North Africa to Pakistan, and is leader in most of them. Its main market is Saudi Arabia, where Uber is working on plans to hire female drivers after the Kingdom's decision to revoke the ban on driving women.
The sovereign wealth fund of Saudi Arabia is a major investor in Uber, having acquired a US $ 3,500 million stake in the company in 2016.
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