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Egypt: Uber, Careem reveal to ECA details of their acquisition

By  |  May 5, 2019
Egypt: Uber, Careem reveal to ECA details of their acquisition

The Egyptian Competition Authority (ECA) stated on Saturday that it held hearing sessions with representatives from Uber and Careem as part of the ECA’s investigation on the impact of Uber’s acquisition of Careem on the competition in Egypt. In March, Uber announced that it has reached an agreement to acquire Careem for $3.1bn, consisting of $1.7bn in convertible notes and $1.4bn in cash, revealing that the transaction is expected to close in the first quarter of 2020.

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    According to the acquisition deal, Uber is to acquire all of Careem’s mobility, delivery, and payments businesses across the Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates. Upon closing, Careem will become a wholly-owned subsidiary of Uber, preserving its brand.

    The ECA explained that according to the law, it has the authority to take one of three decisions including: first to reject the acquisition agreement and thus it will not be taken into effect, according to Article 20 of the Competition Protection Act.

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