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Uber could announce a $3 billion deal with Careem beginning of this week: sources

A mobile phone with the Uber transport technology app, with the destination and the cost of the international airport, is seen in a car with a Uber driver, in Santiago, Chile, March 15, 2019. REUTERS/Rodrigo Garrido

(Reuters) – Uber Technologies Inc is set to offer more than $3 billion to buy Dubai-based rival Careem Networks FZ, the two sources familiar with the deal told Reuters.

Uber, the offer could be revealed in the beginning of this week, a third source added.

Uber will pay $1.4 billion in cash and $1.7 billion in convertible bonds, which will be converted in Uber shares, at a price equal to € 55 per share, Bloomberg had earlier reported, citing a term sheet.

Careem refused to comment while Uber does not immediately respond to a request from Reuters to comment.

Uber is preparing for an initial public offering, and the bankers have indicated that it could be valued at $120 billion.

The US-based global logistics and transportation company is looking for new opportunities for growth, even if it is faced with fierce competition in the core business of the journey from rivals such as Lyft Inc.

The Success of Lyft and Uber represent a turning point in the Silicon Valley technology unicorns, which for years have snubbed the show in favor of raising capital in the private sphere, with investors happy to back their frothy valuations.

Reporting by Saeed Azhar and Hadeel Al Sayegh in Dubai and Mekhla Raina in Bengaluru; additional reporting by Alexander Cornwell Dubai; Editing by Leslie Adler and Lisa Shumaker

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