Uber China to be acquired by Didi Chuxing after $35 billion merger

Ride-hailing service Uber Technologies Inc would merge its China business with rival Didi Chuxing, valuing the combined company at $35 billion, Bloomberg reported, citing people familiar with the matter. Investors in Uber China, which is owned by San Francisco-based Uber, Baidu Inc and others, would receive a 20 percent stake in the combined company, Bloomberg said, citing sources. This comes right after Uber decided to invest $500 million in its mapping project. This is an attempt by the company to separate itself from Google Maps and in-turn make a more detailed mapping system for the ride-hailing service. On the other hand, Didi Chuxing raised $7.3 billion in its latest round of funding, including $4.5 billion from new and existing investors, as it battles to fend off Uber’s march into China. Also, China Merchants Bank has committed to become the lead arranger for a syndicated loan facility to Didi of up to $2.5 billion, the company said. China Life Insurance Co Ltd also added a long-term debt investment of about $300 million. Didi intends to use proceeds from the funding round for technology upgrades, big data research and to explore new lines of business. With inputs from Reuters