Uber, Careem seek Saudi regulatory approval on economic concentration

Uber Technologies Inc. and Careem Inc. have filed a request to the Saudi General Authority for Competition (GAC) to approve the economic concentration arising from the planned merger of both entities.

The economic concentration process will occur as Uber buys ride-hailing app Careem for $3.1 billion, the authority said in a statement.

As per the regulations, the competition authority invited concerned stakeholders and businesses to cast their opinion on the matter within 15 days.

In March, Dubai's ride-hailing app Careem was acquired by Uber for $3.1 billion, as Careem will become a wholly-owned subsidiary of Uber, but will continue to operate independently. The transaction consisted of $1.7 billion in convertible notes, and $1.4 billion in cash.