Uber will give its business in Southeast Asia to Grab

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© Reuters. UBER WILL GIVE ITS BUSINESS IN SOUTHEAST ASIA TO GRAB

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SINGAPORE (Reuters) – Uber Technologies is going to sell his business in South-East asia, its major competitor VTC regional Grab, we learn from a source close to the folder, an operation that would be the second assignment in Asia of the american giant services of vehicles with driver (VTC), after his release from China.

This sale, which could be announced as early as Monday, marks the first major operation of consolidation of the sector in the south-east asia, which is expected to strengthen the pressure on the indonesian Go-Jek, supported by Alphabet, the parent company Google (NASDAQ:GOOGLE), and the chinese Tencent Holdings.

In the framework of the agreement, Uber will get a stake of up to a maximum of 30% in the new entity resulting from the merger between the two activities, says the source.

Another source close to the case has reported that Uber could take 25% to 30% of the share capital of the Grab, which valued the activity in one set to six billion dollars, as much as at its last capital raising.

Uber has got in January a funding of several billions of dollars from the conglomerate japanese SoftBank Group, also a shareholder of Grab, suggesting a possible rapprochement with the asian group.

The agreement between Grab and Uber would be similar to the one made in China in 2016, when the chinese Didi Chuxing has acquired the assets of Uber in exchange for a stake in its rival.

Grab a dominant position in several markets of South-East Asia where there are approximately 640 million people.

Uber declined to comment, as Grab, whose value is estimated at approximately six billion dollars.

Sources close to the matter, Bloomberg revealed on Sunday the signing of the assignment agreement between Uber and Grab.

(Anshuman Daga and Anshuman Daga, Juliette Rouillon for the French service)

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