The Egyptian Competition Authority (ECA) said on Sunday it had approved ride-hailing group Uber’s acquisition of former regional rival Careem after the regulator agreed to a set of commitments proposed by the U.S.-based service.
Uber bought Careem for $3.1 billion in March in a deal expected to close in January 2020. Careem will become a wholly owned subsidiary of Uber but will continue to operate as an independent brand with independent management, as mentioned in Reuters report.
As an Engadget report, there are still other approvals needed if the union is going to close as planned in January, but it now appears to be more a matter of time.
The Careem buyout could be crucial for Uber. The firm has spent the past few years retreating on the international stage, having sold its Southeast Asian business to Grab, partnered with Didi in China and merged its Russian unit with Yandex. This is an expansion that could give it more clout beyond (relatively) safe regions like North America and Europe.
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