Chinese transportation company Didi Chuxing is acquiring the local business of its rival Uber for a price of $35 billion.
The deal, which was first reported by Bloomberg and Recode, was later confirmed by Uber Chief Executive Officer Travis Kalanick in a Facebook post.
Didi is also making a $1 billion investment in Uber at a valuation of $68 billion. Meanwhile, Uber will receive 5.89 percent of the newly combined firm’s assets in exchange of giving its operation in China.
The China-based firm has been involved with Uber in a heated ride war in China, with both companies taking shots at each other in the past.
But, Uber is now hanging up the gloves as it found that it is very hard to compete with Didi’s growing dominance. For instance, Didi recently received a $1 billion investment from Apple and later raised more than $7 billion in new funding while Uber has lost over $2 billion in China.
With the two companies now merging, one source said that it is a win-win for both of them.
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