Dubai – Mubasher: The UAE-based ride-hailing app Careem said that it has been considering investment options and fundraising with its financial advisor Jefferies Group, comprising a potential mergers and acquisition deal with its rival Uber Technologies Inc, three informed sources said.
The hiring of the US investment bank signalled that the Middle East ride-hailing firm’s negotiations over a potential transaction have become more serious, sources told Reuters on Tuesday.
Uber, Careem, and the American lender declined to give a comment.
A person familiar with talks between Uber and China’s DiDi Chuxing, which have been ongoing for months, said the US ride-hailing company is interested in a deal providing them with a majority, controlling stake in Careem.
Uber’s CEO Dara Khosrowshahi indicated that his company does not plan to implement any deals with global competitors, particularly if these transactions will give it a minority stake.
On a separate note, Careem obtained a $200 million loan in October to carry out its expansion plans over the coming period.
In July, Uber Technologies started initial talks with its Dubai-based rival to merge their Middle Eastern services.
In October, the Egyptian Competition Authority (ECA) stated that it warned against possible merger between Uber and Careem as this may lead to serious and irreversible damage to consumers.
