- Uber Technologies, a San Francisco-based riding-hailing firm, is selling its China operations to rival Didi Chuxing, China's leading ride-hailing service, after losing $2 billion in China in the past two years.
- Former shareholders of Uber China, including Uber Technologies and the China search giant Baidu, will receive a 20% economic stake in the combined company Didi Chuxing. Uber will receive a 5.89% direct stake in the combined company.
- Didi will also invest $1 billion in an equity stake in Uber's global company.
- Didi's valuation after the merger is $35 billion—combining Didi's latest valuation of $28 billion and Uber China's $7 billion worth.
- Upon completion, Uber China will become a wholly-owned subsidiary of Didi Chuxing.
- The merger is subject to regulatory approval, including antitrust clearance from China's Ministry of Commerce.
- On July 28, the Ministry of Transport announced that China would legalise online car-hailing businesses in China.
- Skadden Arps Slate Meagher & Flom (Julie Gao, Will Cai, Steven Sunshine, Matthew Hendrickson, Rory McAlpine, David Rievman, Nathan Giesselman) is advising Didi alongside Fangda Partners (Tan Peng, Michael Han) as China counsel.
- Davis Polk & Wardwell (Miranda So) is acting for Uber alongside Han Kun Law Offices (Charles Li, Gloria Xu, Estella Chen, Ma Chen, Will Huang, Chen Rong) as China counsel.
Wai Yee Tsang - Journalist - Asia-Pacific