Car-hailing firm Didi buys control of Uber's Brazil rival
China’s ride-hailing application Didi Chuxing has agreed to acquire control of Brazil’s 99, the companies said in a statement on Wednesday, potentially creating a formidable rival to Uber.
The companies did not disclose the stake acquired nor the value, but an earlier report by Brazilian newspaper Valor Econômico on Wednesday said the deal valued 99 at USD 1 billion.
According to the paper, which cited sources familiar with talks, the Chinese company bought out investors such as Riverwood Capital, Monashees Inc., Qualcomm Ventures, Tiger Global Management LLC and Softbank Group Corp.
The acquisition intensifies Didi’s global rivalry with Uber, especially in Latin America. Reuters reported in December that Didi plans to enter Mexico this year.
Cheng Wei, founder and CEO of Didi, said in Wednesday’s statement that “globalization is a top strategic priority for Didi.”
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