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Grab is said close to deal for Uber Southeast Asia business

Bloomberg Published on Thu, Mar 08, 2018 / 2:49 PM GMT+8

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(Mar 8): Grab, the dominant ride-hailing service in Southeast Asia, is close to finalising a deal to acquire Uber Technologies Inc.’s business in the region and may sign a deal this week or next, according to people familiar with the matter.

Under terms of the proposed agreement, Grab would buy out Uber’s operations in certain markets in Southeast Asia and Uber will take a stake in Grab, the people said, asking not to be named because the talks are private. The structure would be similar to the deal Uber struck with Didi Chuxing in China in 2016, when the San Francisco-based company sold its local operation in exchange for equity in the company. Under a scenario being considered, Uber’s stake in Grab is likely to be in the high teens or 20%, said one of the people.

Grab has separately been in discussions with existing backers, including SoftBank Group Corp., and new investors for additional capital, according to people familiar with the talks. Grab was most recently valued at US$6 billion ($7.9 billion), according to CB Insights. The current talks may still fall apart or the terms and timing may change.