Chinese taxi-hailing company Didi Chuxing to acquire Uber China

Author: MLex Staff
1 Aug 16 | 10:36 GMT

IN BRIEF
Chinese taxi-hailing company Didi Chuxing announced today that it will acquire Uber China, the subsidiary of global taxi-hailing company Uber. Under terms of the transaction, Did will take over all of Uber China’s assets, including its brand, business and data in mainland China.

Chinese taxi-hailing company Didi Chuxing announced today that it will acquire Uber China, the subsidiary of global taxi-hailing company Uber. 

Under terms of the transaction, Did will take over all of Uber China’s assets, including its brand, business and data in mainland China.

It is unclear if the deal will require regulatory approval from the Ministry of Commerce.

After the transaction, Didi Chuxing and Uber will be minority shareholders in each other. Uber will have a 5.89-percent stake in Didi Chuxing with preferred equity interest equivalent to 17.7 of the economic interest. Other shareholders of Uber China will have an economic interest of 2.3 percent.

Didi Chuxing will be the only company jointly invested by all three of China’s Internet giants Tencent, Alibaba and Baidu.

Cheng Wei, Didi Chuxing’s founder and chairman, and Travis Kalanick, founder of Uber, will join each other’s board.

In the future, Uber China will retain its brand and operate independently. Didi Chuxing will integrate the two companies’ experiences and expertise in both management and technologies, and the two teams will share resources and leverage synergies in user resources, online and offline operations, as well as marketing.

The Chinese company also pledged that it will work closely with regulators to further develop the market.

Didi will accelerate the pace of its globalization efforts and plans to enter more overseas emerging markets, including Hong Kong, Macau and Taiwan, as well as Japan, South Korea, Europe and Russia, the company said.