Uber’s $3.1 billion acquisition of Careem has received the green light from the UAE with country’s Ministry of Economy granting full approval of the deal, different local media outlets reported today. UAE is the first country to grant approval to the deal that was announced in March this year.
An Uber spokesperson, commenting on the occasion, said, “We welcome the decision by HE Sultan Al Mansouri, Minister of Economy of the UAE, to unconditionally approve Uber’s pending acquisition of Careem. Uber and Careem joining forces will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”
A Careem spokesperson, sharing their thoughts, added, “Unconditional approval of this deal by the UAE government is a positive step towards the closure of the biggest technology transaction in the region. We welcome the decision and look forward to pursuing the platform opportunity and leapfrogging the region into the digital future.”
The two companies are still working with other governments in the region to have the deal approved and may run into some trouble in Egypt only as it’s the only country that has publicly raised concerns about the merger in the past.
The deal that’s the largest of its kind for a technology startup in MENA consists of $1.7 billion in convertible notes and $1.4 billion in cash and has helped many win big including Careem’s founders, employees, and investors.
Uber that went public a few weeks after acquiring Careem had a terrible start with its stock that was already priced at low-end of its IPO range losing almost 20% during its first two days of trading. The stock, for the first time, traded above its IPO price last week but that didn’t last long. At the time of writing, it is trading at $42.84.